STATE  OF 


No.  306. 


IN  ASSEMBLY, 

April  11,  1840. 


REPORT 

Of  the  Canal  Board,  in  answer  to  resolutions  of  the 
Assembly  respecting  the  canal  debts  and  reve- 
nues, and  the  enlargement  of  the  Erie  canal,  &c. 

TO  THE  HONORABLE  THE  ASSEMBLY. 
The  Canal  Board  has  received  the  two  following  resolutions  : 

''In  Assembly,  March  7,  1840. 

''  Resol$)ed,  That  the  Canal  Board  be  requested  to  report  to  this 
House  whether,  in  their  opinion,  any  change  can  now  be  made,  advan- 
tageously to  the  public  interests,  in  the  plan,  dimensions  or  manner  of 
execution  of  the  work,  adopted  for  the  enlargement  of  the  Erie  canal, 
so  as  to  lessen  the  expense  of  that  work  ;  and  also  how  long  a  period 
of  time  will  be  required  to  complete,  most  advantageously  to  the  public 
interests,  the  enlargement  of  said  canal ;  and  also  what  amount  of  tolls, 
at  present  rates,  after  deducting  all  expenses  of  repairs,  superintendence 
and  other  charges,  will  in  their  opinion  probably  be  received  from  all 
the  navigable  canals  of  this  State,  in  each  of  the  next  seven  years  ;  and 
also  how  much,  in  their  judgment,  the  debt  of  this  State  can  be  increas- 
ed during  the  next  seven  years,  without  being  obliged  to  resort  to  direct 
taxation  or  loans,  to  pay  interest  and  defray  the  current  expenses  of  the 
government ;  and  also  at  what  period  of  time,  and  from  what  sources 
of  revenue,  the  existing  canal  debt  unprovided  for,  of  $10,276,864,  can 
be  paid  and  extinguished  without  resorting  to  new  loans  or  direct  taxa- 
tion for  that  purpose." 

[Assembly,  No.  306.]  1 


2  [ASSEMBLY 

^        •  *  *^  *  ^  ^  In  Assembly,  March  U,  1840. 

^  itesolved,  That  the  Canal  Board,  in  addition  to  the  matter  speci- 

fied in  the  resolution  of  this  House  of  the  7th  inst.  be  required  to  com- 
municate to  the  Assembly  their  opinion  of  the  extent  to  which  aid  may 
be  rendered  by  the  State  to  enterprises  of  internal  improvement,  by  a 
loan  of  its  stock,  or  otherwise,  without  impairing  its  resources  to  pro- 
secute the  canals  now  in  progress,  and  without  injury  to  its  financial 
arrangements." 

Full  answers  on  the  subject  of  these  inquiries  might  embrace  the 
whole  system  of  internal  improvement  in  this  State,  and  our  financial 
policy,  in  reference  to  its  resources,  present  and  prospective  ;  and  might 
include  those  general  and  extended  views  which  would  reach  to  poste- 
rity. The  resolutions  themselves,  however,  so  far  as  they  relate  to 
revenue  and  debts,  refer  to  the  next  seven  years  only ;  a  period  when 
the  benefits  of  our  internal  commerce  to  be  derived  from  an  enlarged 
canal  will  but  have  commenced,  and  will  have  been  scarcely  felt.  The 
three  last  inquiries  in  the  first  resolution  seem  intended  to  exclude  con- 
siderations arising  from  the  completion  of  the  enlargement,  and  to  con- 
fine the  attention  of  the  Canal  Board  to  the  present  canals,  in  their  pre- 
sent dimensions.  Although  only  a  partial  and  incomplete  view  of  the 
whole  subject  will  be  obtained  by  such  a  mode  of  considering  it,  yet 
the  Board  will  conform  to  the  apparent  intention  of  the  Assembly,  and 
in  their  answers  to  those  inquiries  will  omit  all  consideration  of  re- 
sources to  be  derived  from  the  completion  of  the  enlarged  canal. 

In  the  view  which  the  Board  has  taken,  it  will  be  more  convenient 
to  answer  the  inquiries  in  an  order  somewhat  different  from  that  in 
which  they  are  made,  and  which  it  is  presumed  will  be  equally  satis- 
factory to  the  Assembly.  The  answers  to  all  the  questions  depend,  in 
a  greater  or  less  degree,  upon  that  which  shall  be  given  to  the  third, 
relating  to  the  amount  of  tolls  which  may  be  received  during  the  next 
seven  years  ;  and,  indeed,  until  that  is  disposed  of,  many  of  them  can 
not  be  answered  at  all,  and  none  of  them  fully.  The  terms  of  that  in- 
quiry are,  "  what  amount  of  tolls,  at  present  rates,  after  deducting  all 
expenses  of  repairs,  superintendence  and  other  charges,  will,  in  the 
opinion  of  the  Board,  probably  be  received  from  all  the  navigable  ca- 
nals of  this  State,  in  each  of  the  next  seven  years  ?" 


It  will  be  observed  that  the  inquiry  relates  to  tolls  only,  and  excludes 
Tents  from  surplus  waters,  and  all  other  income  but  the  duties  levied 


No.  306.] 


3 


upon  the  transportation  of  property  and  passengers.  It  is  also  confin* 
ed  to  the  present  rates,  and  therefore  excludes  from  calculation  any  in- 
crease in  the  tolls  upon  any  particular  articles,  which  might  be  antici- 
pated by  a  modification  of  those  rates.  It  is  obvious  that  all  estimates 
upon  a  future  state  of  things  must  partake  of  the  infirmity  of  all  hu- 
man calculations.  Absolute  certainty,  as  to  the  future,  is  beyond  the 
powers  of  mental  ken  ;  and  yet  there  are  means  of  approximation  to 
it,  furnished  in  the  experience  of  the  past,  which  if  carefully  used  and 
rigorously  applied,  will  lead  to  conclusions  as  satisfactory  as  can  rea- 
sonably be  required  in  human  affairs,  and  as  certain  as  those  by  which 
prudent  and  sagacious  men  are  governed  in  the  transactions  of  business. 
To  these  means  the  Board  have  had  recourse.  They  have  repressed 
all  fancy,  stifled  all  conjecture,  and  have  rigidly  confined  themselves  to 
a  cold  and  severe  analysis  of  figures,  and  to  the  application  of  well 
known  facts  that  no  one  can  controvert.  They  wished  to  satisfy  their 
judgments  and  not  their  feelings,  and  they  have  approached  the  subject 
in  the  spirit  which  might  be  supposed  to  actuate  a  timid  capitalist  in- 
quiring into  the  profit  and  security  of  a  proposed  investment. 

The  means  referred  to  consist  of  the  table  of  moneys  received 
and  paid  by  the  Commissioners  of  the  Canal  Fund  on  account  of  the 
Erie  and  Champlain  Canal  Fund,  up  to  the  30th  September,  1838." 
which  was  prepared  by  the  former  Commissioners  and  submitted  to 
the  Legislature  on  the  3d  January,  1839.  It  is  table  27  of  the  Assem- 
bly Document  No.  26  of  that  year.  The  third  column  of  that  table 
exhibits  the  amount  of  tolls  received  in  each  year.  This  table  is  im- 
perfect in  one  particular  only.  It  gives  the  amount  received  in  1831 
for  only  9  months  instead  of  a  year.  This  was  in  consequence  of  a 
change  in  the  fiscal  year  at  that  time.  In  order  to  render  it  complete 
for  the  purposes  of  comparison,  the  tolls  received  in  October,  Novem- 
ber and  December  of  that  year  have  been  ascertained  from  the  books 
of  the  treasury  and  added  to  those  of  the  9  months.  The  object  is  not 
to  obtain  the  whole  amount  of  tolls  received  since  the  commencement 
of  the  canals,  but  to  ascertain  the  amount  received  in  each  year,  for 
the  purpose  of  comparing  it  with  other  years  ;  and  therefore  the  fact 
that  the  tolls  of  the  three  months  referred  to  are  included  in  the  receipts 
of  both  1831  and  1832,  is  of  no  importance.  This  table,  thus  cor- 
rected and  completed  by  the  addition  of  the  receipts  of  the  last  year, 
as  stated  in  the  report  of  the  Commissioners  of  the  Canal  Fund  for  the 
present  year  at  page  7,  Document  No.  74,  is  the  basis  of  all  the  esti 


4 


[Assembly 


mates  of  the  Board ;  and  for  that  reason  as  well  as  on  account  of  its 
importance,  it  is  here  presented.  It  should  be  remarked  that  it  re- 
lates to  tolls  received  on  the  Erie  and  Champlain  canals  only,  and  gives 
the  amount,  after  deducting  the  expenses  of  collection,  that  is,  the  com- 
pensation of  collectors  and  inspectors,  and  expenses  of  collectors'  offi- 
ces. 

Table  of  tolls  received  from  the  Erie  and  Champlain  canals  from 
1825,  when  they  were  completed,  to  the  30th  September,  1839,  after 
deducting  all  expenses  of  collection. 


1826,   $839,925  02 

1827,   849,032  07 

1828,   786,236  64 

1829,   763,527  91 

1830,   990,842  96 

1831,   1,187,139  00 

1832,   1,059,006  36 

1833,   1,317,258  33 

1834,   1,305,573  14 

1835,   1,395,306  26 

1836,   1,504,384  05 

1837,   1,233,648  84 

1838,   1,365,506  80 

1839,   1,537,532  92 


Up  to  1831,  inclusive,  the  tolls  are  given  for  the  political  year  ;  sub- 
sequently, they  are  given  for  the  fiscal  year,  ending  30th  September. 
The  charges  of  superintendence  are  not  deducted  from  the  tolls  receiv- 
ed, because  those  charges  do  not  depend  for  their  increase  or  diminu- 
tion upon  the  same  causes  that  affect  the  tolls.  Thus  in  1836,  when 
the  tolls  were  $1,504,384.05,  the  charges  of  superintendence,  &c. 
were  $321,999  ;  while  in  1837,  when  the  tolls  were  $1,233,648  only, 
the  charge  of  superintendence  were  $376,357  ;  upwards  of  $50,000 
more  than  in  1836. 

This  table,  as  already  remarked,  does  not  include  the  tolls  received 
from  the  lateral  canals.    Those  tolls  are  less  than  the  amount  of  inte 
rest  upon  the  debts  for  their  construction,  and  the  charges  of  collection, 
repair  and  superintendence.    The  deficiency  is  paid  by  the  general 
fund,  nominally,  but  really,  by  the  revenues  of  the  Erie  and  Champlain 


No.  306.] 


5 


canals,  out  of  which  $400,000  annually  is  paid  to  the  treasur}^ ;  g% 
ceeding  by  about  Jf20,000,  the  whole  amount  of  the  deficiences  the 
past  year.    This  table,  therefore,  furnishes  the  income  hitherto  derived 
from  the  canals,  without  any  addition  on  account  of  the  tolls,  or  deduc- 
tion on  account  of  the  deficiencies  on  the  lateral  canals. 

From  the  materials  furnished  by  the  above  table,  the  Board  has  en- 
deavored to  extract  a  rule  for  computing  the  future  tolls.  It  will  be 
seen  that  it  embraces  a  term  of  fourteen  years,  during  which  there  have 
been  various  fluctuations  in  the  business  and  currency  of  the  country, 
and  in  which  the  tolls  have  indicated  those  fluctuations  with  unerring 
certainty.  It  is  obvious  that  any  calculation  of  future  revenue  which 
did  not  include  and  provide  for  similar  changes,  would  be  delusive. 
Hence,  an  estimate  for  one  or  two  years,  founded  upon  the  receipts  of 
the  preceding  year,  would  be  unsound  ;  and  one  for  such  a  long  term 
as  would  prevent  the  fluctuations  being  felt,  would  be  equally  fallacious. 
It  was  desirable,  therefore,  to  find  a  term  of  time,  which  would  include 
the  changes  that  should  be  provided  for,  and  yet  not  so  long  as  to  be 
beyond  the  reach  of  existing  causes.  The  term  of  seven  years,  indi 
Gated  by  the  resolution  of  the  Assembly,  probably  answers  the  purpose 
better  than  any  other.  Very  great  changes  in  the  permanent  sources 
of  our  trade,  cannot  be  well  anticipated  within  seven  years  ;  while  the 
preceding  table  shows  that  it  is  sufliciently  long  to  include  great  fluc- 
tuations in  the  amount  of  that  trade  as  affected  by  the  general  prospe- 
rity of  the  country.  A  table  has,  therefore,  been  constructed  for  peri- 
ods of  seven  yeari,  founded  upon  the  tolls  received,  estimating  their  in- 
crease at  the  rate  of  seven  per  cent  in  each  year  ;  and  the  result  of  this 
estimate  is  compared  with  the  tolls  actually  received  in  the  year  to 
which  the  estimate  refers.  For  the  purpose  of  illustrating,  by  example, 
and  furnishing  the  opportunity  to  test  its  accuracy,  the  table  is  here 
given  at  large. 

In  1826,  the  tolls  were  $839,925  :  in  7  years,  at  7  per  cent,  they 


would  be   $1,251,488 

In  1833,  that  is,  in  7  years,  they  were  $1,317,258 

In  1827,  the  tolls  were  $849,032  :  in  7  years 

they  would  be   1,265,058 

In  1834,  they  were   1,305,573 


Carried  forward,  $2,622,831  $2,516,546 


6  [Assembly 

Brought  forward,  $2,622,831  $2,516,546 

In  1828,  the  tolls  were  $786,236  :  in  7  years 

they  would  be   1,171,492 

In  1835,  they  were   1,395,306 

In  1829,  the  tolls  were  $763,527  :  in  7  years 

they  would  be   1,137,655 

In  1836,  they  were   1,504,384 

In  1830,  the  tolls  were  $990,843  :  in  7  years 

they  would  be   1,476,356 

In  1 837,  they  were   1 ,233,648 

In  1831,  the  tolls  were  $1,187,139:  in  7  years 

they  would  be   1 ,768,837 

In  1 838,  they  were   1 ,365,506 

In  1832,  the  tolls  were  $1,059,006  :  in  7  years 

they  would  be   1,577,919 

In  1839,  they  were   1,537,532 


Total  tolls  received,  $9,659,207   

Total  tolls  as  estimated  at  7  per  cent,.  $9,648,805 


It  will  be  seen  that  there  is  a  surprising  coincidence  between  the  es- 
timated revenue  for  any  given  seventh  year,  and  the  actual  receipts  in 
that  year,  and  that  the  total  of  the  actual  receipts  were  greater  than  that 
estimated.  With  a  view  to  test  the  principle  of  thus  estimating  for 
terms  of  years,  tables  have  been  made  for  terms  of  5  years  at  6  per  cent, 
ten  years  at  7j  per  cent,  and  ten  years  at  8  per  cent,  besides  the  one 
above  given,  and  which  have  been  calculated  in  the  same  way.  The 
results  are  shown  in  the  following  table.  Opposite  the  year,  the  amount 
that  would  be  received,  according  to  the  estimates,  in  that  year,  is  giv- 
en in  columns,  stating  the  period  and  the  rate  per  cent,  and  in  the  last 
column  the  amount  actually  received  in  that  year  is  given.  When  the 
table  of  tolls  received  does  not  enable  the  calculation  to  be  made  for 
the  given  number  of  years,  no  result  is  carried  out. 


No.  306.] 


7 


Year. 

For  5  years  at  6 
per  cent. 

For  7  years  at  7 
per  cent. 

For  10  years  at 
7^  per  cent. 

For  10  years  at 
8  per  cent. 

Actual  amount 
received. 

1831, 
1832, 
1833, 
1834, 
1835, 
1836, 
1837, 
1838, 
1839, 

$1,091,902 
1 ,103,742 
1,022,107 
992,585 
1,288,096 
] ,543,281 
1,376,708 
1,712,435 
1,697,245 

.4^1,187,139 
1,059,006 
1,317,258 
1,305,573 
1,395,306 
1,504,384 
1,233,648 
1,365,506 
1,587,532 

_ 

81,251,488 
1,265,058 
1,171,492 
1,137,655 
1,476,356 
1,768,837 
1,577,919 

^1,469,869 
1,485,806 
1,375,913 
1,336,173 

$1,511,165 
1,528,257 
1,415,225 
1,374,349 

The  general  comparative  results  are  as  follows  : 
The  total  amount  of  the  estimated  income  for  the  nine 

periods  of  5  years,  at  6  per  cent,  is  «   $11,828,101 

The  actual  amount  in  these  years  was...   11,905,352 

Total  estim^ated  income  for  the  seven  periods  of  7  years, 

at  7  per  cent,  is   9,648,805 

The  actual  amount  received  in  the  7  specified  years  was  9,659,207 
The  total  estimated  income  for  the  four  periods  of  ten 

years,  at  1\  per  cent,  is   5,667,761 

The  actual  amount  received  in  the  4  specified  years  was  5,641,068 
The  total  estimated  income  in  the  four  periods  of  10 

years,  at  8  per  cent,  is   5,828,996 

The  actual  amount  received  was,  as  before,   5,641,068 


It  is  obvious,  upon  an  examination  of  the  foregoing  results,  that  the 
nearest  approximation  to  the  actual  income  are  those  founded  upon  an 
estimate  of  seven  per  cent  for  seven  years,  and  of  seven  and  a  half  per 
cent  for  ten  years.  These  are  so  nearly  alike  that  they  prove  each 
other,  and  show  that  the  rate  of  increase  is  in  those  proportions.  It 
will  be  observed,  that  the  greatest  discrepancy  between  the  estimated 
and  actual  income,  is  in  1837  and  1838,  years  distinguished  for  the 
depression  of  trade  and  the  diminution  of  the  tolls. 

The  Canal  Board  is  of  opinion,  that  the  estimate  of  an  increase  in  any 
given  term  of  ten  years,  at  seven  and  a  half  per  cent  in  each  year,  upon 
the  original  sum,  may  be  safely  relied  on.  It  will  be  perceived  that  in 
the  four  periods  of  that  term,  which  the  returns  enable  us  to  test,  the 
estimated  increase  is  $26,693  more  than  the  actual  increase. 


8 


[Assembly 


Applying  the  same  principle  of  estimate  to  the  ensuing  seven  years, 
founded  on  the  actual  returns  of  the  preceding  years,  the  following  re- 
sult is  obtained : 

In  1830,  the  amount  of  tolls  received  was  $990,843. 

In  1840,  at  an  increase  of  7^  per  cent  in  each  year,  it 


would  be   $1,733,975 

In  1831,  the  amount  was  $1,187,139. 

In  1841,  at  7^  per  cent  per  annum,  it  would  be,   2,077,493 

In  1832,  the  amount  was  $1,059,006. 

In  1842,  at  7^  per  cent,  it  would  be   1,853,261 

In  1833,  the  amount  was  $1,317,258. 

In  1843,  at  7 J  per  cent,  it  would  be   2,305,201 

In  1834,  the  amount  was  $1,305,573. 

In  1844,  at  7^  per  cent,     would  be   2,284,752 

In  1835,  the  amount  was  $1,395,306. 

In  1845,  at  7 J  per  cent,  it  would  be   2,441,786 

In  1836,  the  amount  was  $1,504,384. 

In  1846,  at  7 J  per  cent,  it  would  be   2,632,672 


$15,329,140 


To  enable  the  Assembly  to  judge  of  the  estimates  founded  upon  dif- 
ferent ratios  of  increase,  the  following  table  has  been  prepared,  show- 
ing the  probable  amount  of  tolls  in  each  of  the  ensuing  seven  years,  at 
the  different  rates  which  hav3  been  mentioned. 

Estimated  amount  of  tolls  in  each  of  the  next  seven  years,  at  different 
rates  of  increase,  upon  the  amounts  actually  received  in  former 


years. 


Year  when 

Amount  at  an  in- 

Amount at  an  in- 

Amount at  an  in- 

Amount at  an  in- 

tolls will  be 

crease  of  6  per  ct. 

crease  of  7  per  ct. 

crease  of  7^  pr.  ct. 

crease  of  8  per  ct. 

received. 

for  5  years. 

for  7  years. 

for  10  years. 

for  10  years. 

1840 

$1,813,898 

$1,962,714 

$1,733,975 

$1,783,517 

1841 

1 ,955,697 

1,945,304 

2,077,493 

2,136,850 

1842 

1,603,742 

2,079,005 

1,853,261 

1,906,211 

1843 

1,775,158 

2,241,532 

2,305,201 

2,371,064 

1844 

1,998,792 

1,838,135 

2,284,752 

2,350,031 

1845 

2,034,604 

2,441,786 

2,511 ,551 

1846 

2,290,923 

2,632,672 

2,707,891 

No.  306.] 


9 


For  the  reasons  before  given,  the  Board  prefers  the  estimate  founded 
upon  an  annual  increase  of  7^  per  cent  for  ten  years. 

It  is  a  circumstance  which  commends  this  estimate  to  a  favorable 
consideration,  that  while  there  is  a  steady  increase  in  the  whole  term 
of  seven  years,  it  is  not  a  regular  and  artificial  one,  but  is  precisely 
like  those  which  have  occurred,  less  in  one  year  than  in  another  ;  and 
the  proportionate  increase  is  less  than  was  actually  realized  in  the  same 
periods  during  the  time  of  which  we  have  returns.  The  best  reflec- 
tions which  the  Board  have  been  able  to  bestow  on  the  subject,  induce 
them  to  believe  that  sums  not  varying  essentially  from  those  above  es- 
timated, upon  an  increase  of  seven  and  a  half  per  cent  for  ten  years, 
will  be  collected  in  each  of  the  next  seven  years  ;  and  that  at  all  events 
the  total  amount  of  increase  in  that  time,  will  not  vary  from  the  preced- 
ing estimate.  Of  course  it  will  not  be  understood  that  the  Board  ex- 
pect these  precise  sums  will  be  realized,  but  that  the  approximation  to 
them  will  be  sufficiently  near  to  justify  a  general  calculation.  There 
are  some  general  considerations  calculated  to  confirm  this  belief. 

1.  There  is  an  accelerated  force  acquired  by  the  large  amount  to 
^hich  the  tolls  have  already  arrived  ;  there  is  a  larger  element  of  ex- 
pansion, and  other  circumstances  being  similar,  there  is  every  reason 
to  anticipate  a  greater  ratio  of  increase  upon  the  $1,530,000  of  present 
tolls,  than  upon  the  $763,527  that  was  collected  ten  years  ago.  Trade 
begets  trade  ;  exchange  of  commodities  will  produce  still  greater  ex- 
change, particularly  as  the  commodities  themselves  augment.  The 
channels  of  business  furnished  by  the  canals  have  become  known,  and 
are  familiar.  They  are  settled,  and  people  adapt  themselves  and  their 
transactions  to  them.  The  tendency  of  internal  trade  towards  these 
channels  is  regular  and  steady,  and  seems  independent  of  those  causes 
which  affect  other  interests.  All  experience  has  shown  that  the  greater 
the  facility  afforded  for  the  transportation  of  persons  or  property,  the 
more  familiar  the  avenues  of  communication  become,  and  the  more 
firmly  and  extensively  the  arrangements  of  business  are  established, 
the  greater  will  be  the  increase  of  business  done,  even  beyond  what 
may  be  considered  the  natural  sources  of  supply. 

2.  New  channels  of  communication  are  continually  opening  to  our 
great  thoroughfare.  Not  only  in  our  own  State  are  these  appearing  in 
the  region  of  country  within  reach  of  the  canals  in  the  form  of  roads, 

[Assembly,  No.  306.]  2 


10 


[Assembly 


but  in  the  Western  States  every  new  communication  is  made  with 
special  reference  to  the  use  of  our  great  highway.  Within  the  last  few 
years,  the  Ohio  canal,  from  Cleveland  to  Portsmouth,  has  been  com- 
pleted, and  we  are  but  just  beginning  to  feel  its  effects.  In  1838,  there 
arrived  on  that  canal,  at  Cleveland,  which  is  known  to  be  the  port  on 
Lake  Erie,  that  communicates  directly  with  Buffalo,  the  entrance  of 
our  canal,  287,465  barrels  of  flour,  and  1,229,012  bushels  of  wheat. 
Reducing  the  whole  to  flour,  at  5  bushels  of  wheat  to  the  barrel  of 
flour,  would  make  533,261  barrels  of  flour.  In  1839  there  arrived  at 
the  same  place,  264,887  barrels  of  flour,  and  1,515,820  bushels  of 
wheat,  which  being  reduced  into  flour  as  before,  shows  568,051  bar- 
rels of  flour.  This  is  more  than  one-half  the  quantity  of  flour  deliver- 
ed at  Troy  and  Albany.  It  is  known  that  a  large  portion  of  the  last 
year's  crop  has  not  come  to  market,  which  accounts  for  the  small  in- 
crease fiom  1838  to  1839,  on  the  Ohio  canal.  Other  canals  are  in 
progress  in  Ohio. 

Indiana  is  engaged  in  the  prosecution  of  a  work,  second  only  in  ex- 
tent and  importance  to  our  own  Erie  canal,  which  is  to  connect  the  rich 
valley  of  the  Wabash  with  the  southwestern  extremity  of  Lake  Erie, 
and  which  will  open  a  direct  communication  with  that  lake  from  the 
most  productive  and  populous  portions  of  Indiana,  and  from  an  impor- 
tant part  of  Illinois.  Of  this  work,  seventy  miles  are  completed  and  in 
operation ;  and  forty-four  miles  are  in  progress  and  will  be  completed 
by  the  month  of  June  next;  requiring  only  the  sum  of  $100,000  for 
that  purpose.  The  State  of  Ohio  is  pledged  to  continue  the  canal  to 
Lake  Erie,  a  distance  of  90  miles  within  her  own  borders;  and  although 
her  other  public  works  are  suspended  or  delayed,  her  Legislature  has 
directed  that  this  shall  be  finished  at  all  events.  Authentic  informa- 
tion recently  received  by  one  of  the  Board  gives  confident  assurance 
that  the  whole  distance  from  La  Fayette  on  the  Wabash  to  Lake  Erie 
will  be  completed  during  the  present  year.  By  the  completion  of  this 
hnk  in  the  chain,  there  will  be  established  a  direct  communication  be- 
tween the  Erie  canal  and  the  lower  portion  of  the  valley  of  the  Ohio. 
The  rich  products  of  this  communication  which  binds  together  the  citi- 
zens of  Indiana,  lUinois,  Ohio  and  New-York,  will  be  shared  by  them 
in  common,  and  its  effect  must  be  to  give  a  new  and  vigorous  impulse 
to  the  increase  of  our  trade  with  the  west.  In  fact,  every  rail-road,  ca- 
nal or  other  avenue  that  is  opened  to  Lake  Erie  by  the  western  States 
and  territories  is  but  an  extension  of  our  own  canal.  There  are  many  other 


No.  306.] 


11 


facts  bearing  on  this  subject;  but  the  Board  content  themselves  with 
a  general  reference  to  this  cause  of  increase  ;  barely  remarking  that  no 
one  acquainted  with  the  character  of  the  population  of  the  great  west 
will  doubt  their  finding  the  most  eifectual  means  to  transport  their  sur- 
plus products  to  the  inland  seas  by  which  they  are  surrounded. 

3.  An  increase  in  the  articles  which  constitute  the  freight  descend- 
ing to  tide  water  may  be  confidently  expected. 

First,  The  article  of  coal.  A  rail-way  has  recently  been  finished 
which  connects  the  coal  mines  at  Blossbiu-gh  in  Pennsylvania  with  the 
Chemung  canal,  and  thus  opens  a  direct  communication  with  the  Erie 
canal.  This  coal  is  represented  by  those  who  have  used  it,  as  equal 
to  the  Pictou,  for  manufacturing  and  domestic  purposes.  It  is  bitu- 
minous, burns  remarkably  clear  and  free,  and  yields  an  intense  heat. 
Persons  interested  in  the  mines  assert  that  1,000  tons  can  be  excavated 
and  delivered  at  the  Chemung  canal  in  a  day.  From  inquiries  made 
by  the  Board,  it  is  believed  that  by  a  proper  adaptation  of  the  tolls,  this 
coal  may  be  brought  even  to  tide  water  and  compete  successfully  with 
the  foreign  article.  At  all  events  it  can  be  introduced  to  a  great  extent 
in  the  manufacture  of  salt,  and  into  domestic  use  along  the  whole  line 
of  the  canal,  and  in  places  within  a  reasonable  distance  from  it.  This 
article  has  also  been  brought  during  the  last  year  from  Ohio  and  ex- 
changed fo^  salt.  An  enterprising  individual  engaged  in  this  trade  is 
of  opinion,  that  by  arrangements  with  the  proper  authorities  of  Ohio, 
reciprocil  rates  of  toll  may  be  established  by  us  upon  their  coal,  and  by 
them  upon  our  manufactured  salt,  which  will  so  cheapen  the  transporta- 
tion of  both,  as  to  promote  the  consumption  of  both  articles  and  materi- 
ally increase  the  canal  revenues  of  each  State. 

Second,  The  article  of  manufactured  salt.  There  is  a  manifest  in- 
crease in  the  quantity  of  this  article.  The  returns  of  the  last  year 
show^  an  increase  over  the  preceding  year  of  9,593  tons  cleared  from 
the  different  offices;  and  although  there  have  been  fluctuations,  yet 
there  has  been  a  steady  augmentation. 

If  fuel  can  be  cheapened,  there  is  little  doubt  that  the  manufacture 
will  be  augmented,  so  as  to  supply  not  only  an  extensive  region  at  the 
west,  and  possibly  it  may  compete  with  foreign  salt,  at  tide-water.  It  is 
already  successfully  competing  with  the  salt  manufactured  in  the  south- 
west.   In  the  report  of  the  Board  of  Pubhc  Works  in  Ohio  for  the  last 


12 


[Assembly 


year,  some  important  facts  appear  in  relation  to  this  subject.  In  1838 
there  was  cleared  at  Cleveland  to  pass  south  on  the  canal,  63,465  bar- 
rels of  salt,  and  in  1839,  there  was  cleared  at  the  same  place  109,916 
barrels ;  an  increase  that  can  be  accounted  for  only  by  the  article  being 
found  better  adapted  for  use  than  that  produced  nearer,  and  by  its  be- 
ing upon  the  whole  cheaper.  In  tracing  it  through  the  returns  from 
the  different  offices  on  the  Ohio  canal,  it  appears  to  be  distributed  very 
regularly  along  the  whole  line,  and  even  at  Portsmouth,  where  the  ca- 
nal unites  with  the  Ohio  river,  there  arrived  in  1839,  17,029  barrels  of 
salt.  It  is  evident  from  these  facts,  that  our  salt  is  destined  to  supply 
the  Ohio  market.  How  much  further  it  will  penetrate,  depends  upon 
the  facilities  afforded  for  its  transportation,  upon  the  rates  of  toll  that 
may  be  imposed  upon  it,  in  this  and  other  States,  and  upon  the  cheap- 
ness of  its  manufacture.  The  region  which  it  now  supplies,  and  those 
which  it  will  probably  supply,  are  increasing  in  population  and  agricul- 
tural improvement,  and  of  course  augmenting  the  demand  for  an  article 
not  of  luxury,  but  of  absolute  necessity.  Every  bushel  yields  [a  double  • 
profit  to  the  State  :  first  in  the  duty  of  six  cents  upon  the  manufacture, 
and  secondly,  in  the  tolls  upon  its  trainsportation. 

Thirdly,  The  articles  of  flour  and  wheat.  As  the  western  States 
and  territories  which  must  use  our  canals  in  conveying  their  produce  to 
market,  increase  in  population,  and  become  exporters  of  their  produce, 
the  tonnage  must  necessarily  increase.  Without  now  pursuing  this 
subject  in  its  details,  it  will  be  sufficient  to  show  the  truth  of  the  re- 
mark, and  the  justness  of  anticipated  increase  to  a  large  amount,  to 
refer  to  the  instance  of  the  State  of  Michigan.  In  consequence  of  the 
great  flood  of  emigrants  constantly  pouring  into  that  State,  it  became  a 
market  for  the  bread  stuffs  and  other  provisions  of  Ohio  which  were 
consumed  by  the  new  settlers.  This  continued  until  the  last  year, 
when  for  the  first  time,  Michigan  became  an  exporting  State,  and  sent 
to  Buffalo,  wheat  to  a  considerable  amount.  Thus  a  double  ac- 
cession is  made  to  our  canal  transportation.  First,  the  wheat,  flour, 
and  provisions  of  Ohio,  no  longer  finding  a  market  at  the  west,  must 
proceed  to  New-York.  The  annual  statistical  report  of  the  Commis- 
sioners of  the  Canal  Fund,  communicated  to  the  Senate  during  its  pre- 
sent session,  (Document  No.  63,)  particularly  statement  8,  shows  38,- 
563  tons  of  flour  arriving  at  Buffalo  and  Black-Rock,  during  the  last 
year,  and  an  inciease  in  the  quantity  over  the  previous  year  of  22,536 
tons.  The  same  cause  must  continue  to  produce  the  same  results. 
Second.  The  new  States,  like  Michigan,  instead  of  being  consumers, 


No.  306.] 


13 


will  become  exporters  of  their  own  products.  As  the  lands  are  cleared^ 
as  population  increases,  as  additional  laborers  are  employed  in  agricul- 
ture, these  products  must  go  on  augmenting  and  multiplying  to  an  ex- 
tent which  it  is  impossible  to  calculate,  and  which  can  be  limited  only 
by  the  wants  of  a  market.  The  eastern  part  of  this  State,  the  city  of 
New-York,  and  above  all,  the  New-England  States  furnish  a  market 
nearly  as  illimitable  as  the  supply.  The  manufactures  of  the  east  fur- 
nish the  equivalents  of  exchange  for  the  bread  stuffs  of  the  west.  The 
one  must  be  fed,  and  the  other  must  be  clothed  and  provided  with  iron, 
glass,  and  other  innumerable  articles,  the  product  of  American  labor. 
This  trade  to  which  we  barely  allude,  and  do  not  undertake  to  describe, 
must  pass  through  our  great  thoroughfare.  It  appears  to  the  Board, 
that  it  can  only  be  necessary  to  ask  the  attention  of  any  reflecting  mind 
to  this  trade,  to  induce  a  fiim  conviction,  that  so  long  as  the  physical 
wants  of  man  remain  the  same,  and  the  relative  position  of  the  east 
and  the  west  continue,  there  must  inevitably  be  a  steady  and  regular 
increase  in  the  tonnage  of  our  canals,  and  of  course  in  the  income  ; 
and  for  the  reasons  already  given,  this  increase  must  be  in  a  greater 
ratio  in  the  ensuing  seven  years,  than  in  any  former  period. 

There  is  one  important  consideration  in  this  connexion  that  must  not 
be  omitted.  The  more  distant  the  point  at  which  any  freight  enters 
the  Erie  canal,  the  greater  will  be  the  tolls  upon  it.  A  ton  entering  at 
Buffalo  pays  more  than  double  the  amount  that  would  be  charged  on  it 
if  entering  at  Syracuse.  Of  course,  all  the  flour,  provisions,  and 
heavy  freight  which  may  be  shipped  from  the  west  to  Buffalo,  is  doubly 
valuable  as  a  source  of  revenue,  to  that  obtained  east  of  the  middle 
point  of  the  canal.  In  this  view  of  the  subject,  it  will  be  seen  that  the 
increase  during  the  last  fourteen  years  in  the  revenues  from  tlie  trade 
on  the  canals,  which  has  been  internal,  and  mostly  confined  to  the  pro- 
ducts of  our  own  State,  altogether  fails  as  a  measure  of  the  augmenta- 
tion to  be  derived  from  the  tolls  on  products  from  Ohio,  Michigan,  and 
other  western  and  southwestern  States. 

Again,  the  same  course  of  remark  is  applicable  to  merchandise  as- 
cending the  canal.  That  which  proceeds  to  Buffalo,  of  course  pays  a 
larger  amount  of  toll  than  that  which  stops  at  any  other  point.  In  the 
proportion  in  which  the  western  vStates  furnish  flour  for  the  New-York 
market,  will  be  their  ability  to  procure  merchandise.  The  tolls  upon 
it  are  double  those  upon  the  descending  freights  ;  and  as  it  increases, 
the  revenues  from  that  source  augment  in  this  large  proportion. 


14 


[Assembly 


There  are  other  causes  which  may  affect  this  question  of  increase  ; 
but  a  desire  to  render  this  report  as  brief  as  possible,  and  to  present 
those  views  only  which  are  of  a  practical  character,  and  bearing  direct- 
ly and  palpably  upon  the  subject,  induces  the  Board  to  omit  the  consi- 
deration of  those  causes.  In  reference  to  those  which  have  been  dis- 
cussed, viz.  1st,  the  accelerated  increase  in  consequence  of  the  large 
amount  of  business  already  done  on  the  canals;  2d,  the  opening  of  new 
channels  of  communication  with  our  great  thoroughfare  ;  and  3d,  an 
augmentation  in  those  articles,  which  from  their  bulk  and  weight,  and 
from  their  being  transported  the  greatest  distances,  produce  the  largest 
amount  of  tolls,  such  as  bread-stuffs,  provisions,  salt  and  coal,  and  the 
return  merchandise  for  the  western  States,  the  Canal  Board  find  every 
reason  for  believing  that  the  estimate  of  the  probable  income  for  the 
next  seven  years,  which  they  have  given,  will  be  more  than  reahzed. 
Indeed,  it  is  their  firm  belief  that  those  estimates  are  underrated,  and 
that  the  arithmetical  ratio  of  increase,  which  they  have  presented,  is  too 
narrow  for  the  new,  natural,  and  as  they  believe  inevitable  causes  which 
will  intervene,  constantly  accelerating  the  augmentation  of  business  on 
the  canals. 

The  next  inquiry  in  the  resohition  of  the  Assembly,  which  seems 
most  properly  to  follow  that  already  answered,  is  as  follows  :  "  At  what 
period  of  time,  and  from  what  sources  of  revenue  can  the  $10,276,864 
of  canal  debt  unprovided  for,  be  paid  and  extinguished,  without  new 
loans,  or  direct  taxation  for  that  purpose  ?" 

The  above  amount  of  debt  is  taken  from  the  report  of  the  Commis- 
sioners of  the  Canal  Fund,  at  p.  33,  where  the  whole  amount  outstand- 
ing is  stated  at  $12,469,398  60 

The  sum  for  which  provision  is  made, 

is  there  stated  at  $2,192,534  32 

But  from  this  should  be  deducted  the 

amount  redeemed  since  the  close  of 

the  fiscal  year,   24,975  38  . 

  2,167,558  94 

$10,301,839  66 

To  which  should  be  added  the  amount  of  the  recent 

loan,   500,000  00 


Present  amount  unprovided  for, 


$10,801,839  66 


No.  306.] 


15 


This  debt  becomes  redeemable  in  the  folio wmg  sums,  and  at  the  fol- 


lowing periods  : 

After  1st  July,  1845,   $2,362,535  66 

do         do  1846,-...   571,304  00 

do         do  1849,   87,000  00 

do         do  1850,   1,256,000  00 

do         do  1854,  (recent  loan,)   500,000  00 

After  1855,   4,000,000  00 

After  I860,   2,025,000  00 


$10,801,839  66 


I'he  only  sources  from  which  this  debt  can  be  paid,  without  new 
loans  or  direct  taxation,  are  the  revenues  of  the  canals.  The  period  of 
time  at  which  it  can  be  paid  and  extinguished,  depends  upon  the  sur- 
plus of  those  revenues  over  and  above  the  present  charges  upon  them, 
and- those  which  it  is  known  will  exist. 

Under  existing  laws,  the  following  sums  must  be  annually  applied, 
from  the  revenues  of  the  canals,  to  the  following  purposes : 

By  chapter  356,  of  the  laws  of  1836,  the  Commissioners  of  the  Ca- 
nal Fund  are  directed  annually  to  loan  to  the  treasury,    $400,000  00 

Out  of  tlys  sum,  the  deficiencies  in  the  revenues  of 
the  lateral  canals,  to  pay  the  interest  on  their  debt,  and 
the  expenses  of  repairs  and  superintendence,  are  to  be 
paid.  The  interest  on  those  debts  being  thus  provided 
for,  that  on  the  loan  for  the  enlargement  of  the  Erie  ca- 
nal, $4,000,000,  and  on  the  loan  for  the  Oneida  river 
improvement,  remains  to  be  provided  for.    This  inte- 


rest amounts  annually  to   201,250  00 

To  which  should  be  added  the  interest  on  the  recent 
loan  of  $500,000,   30,000  00 


Present  annual  charges,   $631,250  00 

Assuming  the  annual  average  charge  for  superinten- 
dence and  repairs  of  the  canals,  not  provided  for,  to  be      500,000  00 


The  total  animal  charge  on  the  revenues  will  be  $1,131,250  00 


16  [Assembly 

This  estimate  for  superintendence  and  repairs,  is  believed  to  be  much 
more  than  will  be  required.  They  have  not  in  any  year  amounted  to 
that  sum  ;  and  there  is  every  reason  for  believing  that  they  will  hereaf- 
ter be  less  than  they  have  been.  The  improved  construction  of  the  en- 
larged canal,  with  an  express  view  to  permanency,  will  render  it  less 
liable  to  injury ;  and  the  manner  in  which  the  streams  that  heretofore 
emptied  into  it,  are  now  conducted  under  it,  will  prevent  its  being  filled 
up  with  the  deposites  of  those  streams,  and  will  secure  its  banks  from 
injury  by  their  irregularities.  The  dangers  anticipated  from  breaches, 
will  thus  be  considerably  obviated,  while  the  establishment  of  guard- 
gates  at  convenient  distances,  will  prevent  any  extensive  injury ;  and 
where  the  enlargement  is  not  completed,  old  and  decayed  structures  are 
or  will  be  replaced  by  those  of  more  durable  character.  There  is  there- 
fore no  good  ground  for  anticipating  that  so  large  a  sum  will  be  requir- 
ed hereafter  to  keep  the  canals  in  order.  But,  on  the  principle  which 
has  guided  the  Board,  in  all  their  estimates  on  this  subject,  of  taking 
amounts  that  will  certainly  be  safe,  they  have  put  down  this  expense  at 
the  above  sum. 

According  to  the  estimates  before  given  of  the  amount  of  tolls  which 
will  be  received  in  each  of  the  next  seven  years,  the  total  amount  of 


the  tolls  received  up  to  the  30th  of  September,  1846,  will 

be   $15,329,140 

The  amount  of  annual  charges  is  estimated  above  at  $1,- 

131,250  per  year  ;  amounting  in  seven  years  to   7,918,750 

Leaving  a  balance  of  _   $7,410,390 

The  principal  of  the  debt  redeemable  in  1845  and  1846,  is  2,933,839 

Leaving  a  balance  of   $4,476,551 


The  debt  due  in  1849  of  $87,000,  would  of  course  be  easily  met 
by  the  revenues  of  that  or  the  preceding  year. 

The  debt  of  $1,256,000,  redeemable  in  1850,  would  not  amount  to 
the  surplus  revenue  of  the  year.  The  annual  income  for  the  then  en- 
suing five  years,  even  assuming  that  it  would  not  be  greater  than  that 
estimated  for  the  year  1846,  would  be  more  than  double  the  amount  of 
debt  redeemable  in  1854  and  1855,  which  is  $4,500,000;  and  the  in- 
come of  the  intervening  five  years  to  1860,  would  be  three  or  four 
times  the  debt  redeemable  in  that  year,  amounting  to  $2,025,000. 


No.  306.] 


17 


In  answer  to  this  inquiry,  therefore,  the  Canal  Board  has  no  hesita- 
tion in  expressing  their  opinion,  that  the  existing  canal  debt  unprovided 
for,  can  be  paid  and  extinguished,  without  new  loans  or  direct  taxation 
for  that  purpose,  from  the  revenues  of  the  canals,  at  the  respective  pe- 
riods when  the  several  portions  of  that  debt  become  redeemable,  and 
still  leave  a  large  surplus  for  other  purposes.  At  the  close  of  the  fiscal 
year,  1846,  in  their  judgment,  that  surplus,  allowing  for  all  contingen- 
ces,  will  not  fall  short  of  four  milhons  of  dollars. 

With  regard  to  the  mode  of  paying  the  debt,  its  gradual  extinguish- 
ment by  the  purchase  of  portions  of  stock  in  each  of  a  few  successive 
years,  is  preferable  to  the  payment  of  a  large  amount  in  any  one  year. 
After  seeing  the  view^s  of  the  Canal  Board  in  reference  to  the  other 
subjects  of  inquiry,  the  Legislature  will  possess  more  materials  for  de- 
termining whether  such  purchase  should  commence  previous  to  the 
time  when  any  specific  amount  of  debt  becomes  redeemable,  or  at,  or 
subsequent  tO;  that  time. 

The  next  inquiry  which  the  Board  propose  to  consider  is  the  4th,  in 
the  resolution  "how  much,  in  their  judgment,  the  debt  of  this  State 
can  be  increased  during  the  next  seven  years,  without  being  obliged  to 
resort  to  direct  taxation  or  loans,  to  pay  interest  and  defray  the  current 
expenses  of  the  government?" 

A  subject  of  expenditure  is  stated  in  this  inquiry,  of  which  the  Board 
has  no  other  means  of  judging  than  such  as  are  possessed  by  every 
member  of  the  Legislature,  viz  :  the  current  expenses  of  government. 
They  are  in  their  nature  fluctuating  and  uncertain  :  the  amount  de- 
pending on  the  appropriations  made  by  the  Legislature.  In  the  Comp- 
troller's last  annual  report,  p.  7  and  8,  the  expenses  of  the  government 

for  the  ensuing  year,  are  estimated  at   $899,911  13 

And  the  revenue  at  p.  7,  at   479,450  00 

$420,461  13 

To  the  revenue  should  be  added 
Balance  of  loan  of  §400,000  not  paid  the  last  year,  see 

p.  21,  

The  loan  for  the  ensuing  year,  

$456,021  17 


$56,021  17 
400,000  00 


[Assembly,  No.  306.] 


3 


18 


[Assembly 


So  that  unless  extraordinary  appropriations  are  made,  the  means  al- 
ready provided  will  defray  the  expenses  of  government.  The  debt 
which  the  General  Fund  owes  to  the  Bank,  Common  School  and  other 
funds  whose  moneys  it  has  used,  do  not  form  any  part  of  current  ex- 
penses. Should  it  be  desired  to  make  provision  for  those  debts,  or  the 
ordinary  debts  of  the  treasury,  it  is  believed  that  ample  means  will  be 
found  in  the  canal  revenues  to  secure  the  interest  on  any  loan  that  may 
be  necessary,  and  to  extinguish  the  principal.  In  answer  to  that  part 
of  the  inquiry,  the  Board  is  of  opinion  that  there  can  be  no  necessity  to 
resort  to  loans  or  to  direct  taxation  to  defray  the  current  expenses  of 
the  government,  whether  the  State  debt  is  increased  or  not ;  and  that 
no  increase  of  debt  will  diminish  the  existing  means  to  defray  those  ex- 
penses so  long  as  the  annual  appropriation  of  $400,000  is  made  to  the 
treasury. 

The  inquiry  of  the  Assembly,  therefore,  resolves  itself  into  this :  how 
much  can  the  debt  of  the  State  be  increased,  without  resorting  to  loans, 
to  pay  interest  on  such  debt  and  on  the  existing  amount  of  State  stock  ? 

In  the  estimate  of  the  means  of  paying  the  debts  of  the  State  for  the 
next  seven  years  which  have  already  been  given,  it  will  be  recollected 
that  the  whole  inter^est  on  the  existing  debt  was  provided  for,  and  also 
the  $400,000  annually  to  the  treasury  ;  and  that  the  balance  of  income 
only,  after  deducting  all  charges  of  superintendence,  &c.  was  applied 
to  the  extinguishment  of  the  principal  of  the  debt ;  and  it  will  also  be 
recollected  that  the  surplus  thus  obtained,  it  was  believed  would 
amount  in  the  next  seven  years  to  $4,476,551,  after  paying  nearly 
three  millions  of  debt  which  would  be  redeemable  within  that  time,  and 
all,  that  by  the  terms  of  the  loans  could  be  paid  before  1849. 

This  surplus,  as  it  would  be  annually  realized,  would  pay  the  inte- 
rest, at  the  rate  of  6  per  cent,  on  a  debt  of  fifteen  millions  of  dollars, 
incurred  diuring  the  next  seven  years,  as  will  appear  from  the  following 
calculation : 

For  3  millions  in  1840,  at  6  per  cent,  the  interest  in  that 

year  would  be   $180,000 

do       in  1841,  $180,000  to  be  added  to  the  inte- 
rest of  that  year,   360,000 


Carried  forward, 


$540,000 


No.  306.]  19 

Brought  forward,   $540,000 

For  3  millions  in  1842,  the  like  addition  to  the  interest  of 

that  year,   540,000 

For  2  milUons  in  1843,  $120,000  to  be  added  to  the  inte- 
rest of  that  year,  „ . . .  660,000 

do       in  1844,  the  like  addition  for  interest  of 

that  year,  780,000 

do       in  1845,          do          do  900,000 

The  same  interest  for  the  year  1846,   900,000 


$4,320,000 


Or  the  same  surplus  will  pay  the  interest,  at  the  rate  of  5  per  cent, 
on  a  debt  of  twenty-one  milhons  of  dollars,  incurred  during  the  next 
seven  years,  as  will  appear  from  the  following  calculation  : 

For  3  millions  in  1840,  at  5  per  cent,  the  interest  of  that  year  8150,000 


do 

in  1841, 

do 

8150,000  to  be  added  for 

that  year. 

300,000 

do 

in  1842, 

do 

do 

do 

450,000 

do 

in  1843, 

do 

do 

do 

600,000 

do 

in  1844, 

do 

do 

do 

750,000 

do 

in  1845, 

do 

do 

do 

900,000 

do' 

in  1846, 

do 

do 

do 

1,050,000 

84,200,000 


This  mode  of  taking  the  aggregate  surphis  in  the  whole  seven  years, 
and  applying  it  to  the  aggregate  interest  to  be  paid  in  the  same  time, 
is,  in  the  opinion  of  the  Board,  to  be  more  relied  on,  than  to  take  the 
estimated  income  for  each  year  and  apply  it  to  the  interest  of  that  year, 
because  it  provides  for  the  fluctuations  of  each  year  by  balancing  them. 
It  takes  the  years  of  depression  and  of  advance,  as  the  returns  show 
they  have  heretofore  been,  and  as  they  may  be  hereafter,  and  averages 
them.  It  undoubtedly  may  so  happen,  that  the  income  of  any  given 
year,  may  not  be  equal  to  the  average,  and  not  adequate  to  pay  the  in- 
terest on  the  loans  previously  contracted,  and  at  the  same  time  justify 
a  new  loan  to  the  anticipated  amount.  But  if  any  reliance  is  to  be 
placed  on  the  history  of  the  past,  a  depression  in  one  or  two  years  is 
sure  to  be  followed  by  an  advance  in  succeeding  years  ;  and  if  any 


20 


[Assembly 


event  occurs  to  disturb  the  natural  and  ordinary  course  of  business,  and 
calculated  to  prevent  the  anticipated  amount  of  tolls,  the  Legislature 
will  be  3iwaxe  of  such  event  and  its  consequences,  and  will  hmit  the 
amount  of  the  loans  for  the  year  accordingly. 

It  is  to  be  observed,  hov^rever,  that  in  the  above  computation  there 
are  large  surpluses,  particularly  at  the  beginning  of  the  series  of  seven 
years,  which,  by  being  invested,  will  be  in  a  course  of  accumulation, 
and  that  this  accumulated  amount  is  not  taken  into  the  account.  Thus 


in  the  year  1840  the  estimated  income  will  be   $1,733,975 

Deduct  annual  chargeS;  as  before,   1,131,250 

And  the  nett  surplus  will  be   602,725 

For  that  year  the  interest  on  3  millions,  at  6  per  cent,  is..  180,000 

Leaving  the  sum  of   $422,725 

which  being  invested  at  5  per  cent,  for  6  years,  would  pro- 
duce  $566,491 


Calculations  have  been  made  in  the  same  way  for  each  year,  includ- 
ing 1846,  from  which  it  appears  that  these  annual  surpluses,  with  the 
proceeds  of  their  investment  at  5  per  cent,  after  paying  all  charges  and 
the  interest  on  the  debt  of  15  millions,  at  6  per  cent,  will  produce,  in 
1846,  the  sum  of  $3,375,172;  and  that  the  same  surpluses,  after  de- 
ducting all  charges  and  the  interest  on  21  millions  at  5  per  cent,  will, 
with  the  proceeds  of  their  investment  at  5  per  cent,  produce,  in  1846, 
$3,753,880.  Either  of  these  sums  will  be  nearly  sufficient  to  pay  the 
existing  debt,  which  becomes  redeemable  in  1846  ;  or,  if  applied  to  the 
payment  of  interest  on  new  loans,  they  would  justify  such  loans  be- 
yond the  amount  already  stated.  But  as  these  surpluses  may  be  con- 
sidered contingent,  the  Board  do  not  rely  on  them  in  their  estimate  of 
the  amount  of  new  loans  that  may  safely  be  made  within  the  next 
seven  years  ;  and  yet  any  view  of  the  subject  which  did  not  include 
them  would  be  incomplete,  and  they  may  fairly  be  referred  to  as  con- 
tingent means  for  supplying  any  deficiencies  in  the  estimated  income, 
and  thereby  strengthen  the  confidence  that  may  be  reposed  in  those  es- 
timates, which  have  been  made  independent  of  these  surpluses. 

But  it  may  be  more  satisfactory  to  see  the  estimated  income  of  each 
year  applied  to  the  payment  of  the  interest  on  the  estimated  debt, 


No.  306.]  21 

which  will  be  chargeable  to  that  year ;  and  for  that  purpose  the  fol- 
lowing table  is  prepared. 

Estimated  income  founded  on  an  increase  of  7 J  per  cent  in  ten  years 

for  1840,  was  ,  $1,733,975 

The  annual  charge  before  stated,  was  $1,131,250 

Interest  on  $3,000,000  at  6  per  cent,   180,000 

 1,311,250 

Surplus,   $422,725 


Estimated  income  as  before,  for  1841,  $2,077,493 

Annual  charges,   $1,131,250 

Interest  on  $6,000,000,  at  6  per  cent,   360,000 

  1,491,250 

Surplus,  '   $586,243 


Estimated  income  as  before,  for  1842,  $1,853,261 

Annual  charges,  $1,131,250 

Interest  on  $9,000,000,  at  6  per  cent,   540,000 

  1,671,250 

Surplus,   182,011 

Estimated  income  as  before,  for  1843,   $2,305,201 

Annual  charges,.  $1,131,250 

Interest  on  $  1 1 ,000,000,  at  6  per  cent,   660,000 

  1,791,250 

Surplus,   $513,951 


Estimated  income  as  before,  for  1844,  $2,284,752 

Annual  charges,  $1,131,250 

Interest  on  $13,000,000,  at  6  per  cent,   780,000 

  1,911,250 


Surplus, 


$373,502 


22 


[Assembly 


Estimated  income  as  before,  for  1845,  $2,441,786 

Annual  charges,  $1,131,250 

Interest  on  $15,000,000,  at  6  per  cent,   900,000 

  2,031,250 

Surplus,   $410,536 


Estimated  income  as  before,  for  1846,  $2,632,672 

Annual  charges,  $1,131,250 

Interest  on  $1 5,000,000,  as  before,   900,000 

  2,031,250 

Surplus,   $601,422 


A  similar  calculation  upon  a  debt  of  twenty-one  millions,  at  5  per 
cent,  incurred  in  the  next  seven  years,  shows  the  following  surplus  in 
each  year  above  the  annual  charges,  and  the  interest  chargeable  upon 
the  year. 


In  1840,  the  surplus  would  'be   $452,725 

In  1841,  "  "  "    646,243 

In  1842,  "  "  "    272,011 

In  1843,  "  "  "    573,951 

In  1844,  "  "  "   403,502 

In  1845,  "  "  "    410,536 

In  1846,  "  "    451,422 


The  irregularity  of  the  surplus  is  owing  to  that  of  the  income,  which 
being  calculated  as  before  stated,  upon  the  income  of  the  preceding 
tenth  year,  varies  with  it. 

Upon  these  surpluses,  after  paying  all  charges  and  the  interest  upon 
the  estimated  debt  of  fifteen  millions  at  6  per  cent,  and  also  in  the  oth- 
er case,  after  paying  the  interest  upon  the  estimated  debt  of  twenty- 
one  millions,  at  5  per  cent,  the  calculations  herein  before  stated  were 
made  of  the  aggregate  of  their  investment,  at  the  end  of  1846.  The 
same  calculation,  of  course,  applies  to  this  mode  of  determining  the 
ability  of  the  State  to  sustain  a  given  debt,  by  applying  the  estimated  in- 
come of  each  year  to  the  interest  and  other  charges  payable  in  that  year ; 
and  there  is  the  same  reason  to  rely  on  the  proceeds  of  such  investment 
as  a  contingent  means  of  supplying  any  deficiencies  in  the  estimated 
income. 


No.  306.] 


23 


It  may  be  shown  that  without  any  increase  whatever  in  the  tolls  of 

the  next  two  years,  over  the  amount  received  during  the  last  year,  they 

will  be  sufficient  to  pay  the  interest  of  a  debt  of  three  millions,  at  6  per 

cent,  contracted  in  each  of  those  years.    The  revenues  of  the  last  year, 

after  deducting  expenses  of  collection,  were  $1,537,532 

The  annual  charges,   $1,131,250 

Interest  on  three  millions,   180,000 

  1,311,250 

Surplus,   $226,282 


Supposing  the  revenues  for  1841  to  be  the  same,  $1,537,532 

The  annual  charges,  $1,131,250 

Interest  on  six  millions,  ...„   360,000 

  1,491,250 

Surplus,   $46,282 


This  view  is  presented  for  the  purpose  of  evincing  the  entire  safety 
of  an  estimate  of  three  millions  a  year  for  the  next  five  years,  or  of  fif- 
teen millions  within  the  next  seven  years,  even  at  6  per  cent  interest. 
But  we  trust  that  the  certainty  of  an  increase,  at  least  corresponding 
with  that  which  has  uniformly  prevailed  since  the  completion  of  the  ca- 
nals, has  been  shown  to  the  satisfaction  of  every  reasonable  inquirer. 
That  increase,  founded  upon  a  strict  arithmetical  proportion,  in  which 
no  allowance  is  made  for  new  causes  of  augmentaiion,  has  been  shown 
to  be  adequate  to  the  payment  of  all  charges,  and  of  the  interest  upon 
a  debt  of  fifteen  millions  at  6  per  cent,  or  twenty-one  millions  at  5  per 
cent,  incurred  during  the  next  seven  years,  and  yet  to  leave  large  sur- 
pluses, which,  if  invested,  would  reduce  the  existing  debt  to  a  large 
amount.    In  addition  to  all  this,  causes  have  been  pointed  out  which 
must  produce  an  augmentation  of  our  canal  revenues,  much  beyond  the 
arithmetical  proportion  of  former  years.    In  the  spirit  in  which  this 
whole  inquiry  has  been  conducted,  with  a  rigid  determination  to  be  go- 
verned only  by  facts,  and  constantly  making  large  and  liberal  estimates 
of  charges  upon  the  revenues,  the  Canal  Board  has  been  unable  to  dis- 
cover any  ground  for  doubting  the  correctness  of  the  results  above  ex- 
hibited.   In  every  view,  therefore,  which  they  are  able  to  take  of  the 
subject,  in  their  deliberate  judgment,  the  debt  of  this  State  can  be  in- 
creased fifteen  millions  of  dollars,  at  an  interest  of  six  per  cent,  during 


24 


[Assembly 


the  next  seven  years,  or  twenty-one  millions,  at  an  interest  of  five  per 
cent,  without  being  obliged  to  resort  to  direct  taxation,  or  to  loans  to 
pay  interest,  and  defray  the  current  expenses  of  government ;  and  they 
add,  that  there  cannot,  in  their  opinion,  be  a  doubt  that  the  revenues 
of  the  canals,  during  the  intervening  time  between  the  making  of  such 
loans  and  the  period  of  their  redemption,  if  such  time  be  the  usual  one 
of  fifteen  to  twenty  years,  will  be  abundantly  adequate  to  extinguish 
the  principal.  As  the  terms  of  the  resolution  do  not  require  the  reasons 
for  this  opinion,  the  Board  abstain  from  giving  them  any  further  than 
by  the  remark,  that  they  may  easily  be  found  by  applying  a  principle  of 
increase  upon  future  income,  similar  to  that  which  they  have  adopted 
in  relation  to  the  past. 

It  is  proper  to  remark  that  the  present  condition  of  the  money  market 
in  Europe,  justifies  the  behef  that  loans  can  be  obtained  to  a  reasonable 
amount  at  5  per  cent  interest,  by  any  State  which  can  satisfy  capitahsts 
that  it  has  a  steady  income,  independent  of  taxation,  more  than  suffi- 
cient to  pay  interest  on  any  sum  it  may  borrow,  and  to  extinguish  the 
principal  when  it  becomes  redeemable  ;  and  which  also  evinces  its  re- 
gard to  public  faith  and  justice,  by  appropriating  such  income  to  those 
purposes.  A  discrimination  between  the  various  American  securities 
is  made  in  England  ;  and  while  the  stocks  of  States  possessing  no  in- 
come, or  one  quite  inadequate,  are  received  with  distrust,  those  of  a 
different  character  will  command  confidence.  It  is  believed  that  igno- 
rance of  the  resources  of  this  State,  or  an  incapacity  to  appreciate  them, 
can  alone  prevent  free  investment  in  our  stocks.  As  that  ignorance  is 
dispelled,  the  money  which  is  constantly  seeking  permanent  security, 
will  demand  our  stocks,  especially  in  the  absence  of  any  issued  by  the 
United  States.  For  these  and  various  reasons  which  might  be  suggest- 
ed, it  is  believed  that  5  per  cent  stocks  of  this  State  can  be  negotiated 
soon  at  par,  or  nearly  so. 

The  Board  has  confined  itself  to  the  questions  put,  and  has  not, 
therefore,  made  any  deduction  from  the  revenue,  to  be  applied  to  the 
enlargement  of  the  Erie  canal,  or  any  other  public  works.  It  is  very 
certain  that  the  revenues  from  the  canals  will  not  alone  be  sufficient  to 
continue  the  enlargement,  and  that  a  resort  to  loans  to  some  extent  will 
be  indispensable.  To  exhaust  all  the  income  for  that  purpose,  and  re- 
serve none  of  it  for  the  payment  of  interest  on  new  debts,  would  pro- 
crastinate that  work,  and  continue  the  embarrassments  which  it  occa- 
sions to  the  navigation  of  the  Erie  canal,  to  an  indefinite  extent,  and 


No.  306.] 


25 


thus  postpone  the  period  when  its  benefits,  particularly  in  the  augmen- 
tation of  tolls,  will  be  realized.    Past  experience  has  shown  that  it  is 
the  better  economy  to  complete  our  public  works  as  promptly  as  may 
be  consistent  with  careful  supervision  and  a  due  regard  to  the  demand 
for  laborers,  and  thus  enjoy  their  revenues  at  the  earliest  period.  For 
if  these  revenues  exceed  the  interest  on  any  debt  contracted  for  the 
works  that  produce  them,  the  sooner  the  surplus  is  realized  the  greater 
will  be  the  ability  to  discharge  those  debts.    The  improvement  would 
thus  be  made  to  pay  for  itself.    In  this  view,  funds  which  would  be  in- 
sufficient to  complete  any  work,  within  a  given  time,  if  applied  directly 
to  it,  would  be  more  than  adequate  to  sustain  a  loan  which  would  finish 
such  work,  and  enable  it  at  the  earliest  period  to  commence  the  repay- 
ment of  the  cost  of  its  construction.    It  is  upon  this  principle  that  our 
canals  have  been  constructed,  and  experience  has  justified  its  wisdom  ; 
and  if  in  the  present  condition  of  the  public  works,  in  reference  to  the 
system  of  internal  improvement  as  a  whole,  and  the  just  claims  of  dif- 
ferent portions  of  the  State,  the  Legislature  should  determine  that  the 
sums  to  be  expended  on  the  enlargement,  or  any  other  public  work, 
should  be  limited  by  the  amount  of  loans  authorized  for  such  work, 
then  the  surplus  of  the  income,  after  paying  the  present  claims  on  it, 
and  the  interest  of  such  loans,  might  be  applied  as  a  sinking  fund,  or  in 
the  gradual  purchase  and  extinguishment  of  the  existing  stocks,  before 
any  large  anfount  should  accumulate.    The  amount  has  already  been 
stated,  to  which  loans  may  safely  be  made  during  the  next  seven  years, 
without  a  resort  to  direct  taxation  or  to  new  loans  to  pay  the  interest; 
and  it  has  been  shown  that  a  large  surplus  will  exist,  particularly  in  the 
earlier  years  of  the  series,  which  may  be  invested  in  some  form.   If  di- 
rections were  given  to  apply  this  surplus,  whatever  it  might  be,  or  a 
portion  of  it,  to  the  purchase  of  outstanding  stocks,  its  effects  upon  the 
credit  of  the  State  would  be  most  beneficial  ;  while  it  would  relieve  the 
community  from  the  consequences  of  drawing  from  banks  or  any  other 
depository  or  borrower,  a  large  amount  at  one  time  for  the  payment  of 
such  stocks.    Another  portion  of  it  might  be  applied  to  the  prosecution 
of  the  enlargement,  or  any  other  public  work. 

Intimately  connected  with  that  part  of  the  subject  just  discussed,  is 
the  inquiry  contained  in  the  supplemental  resolution  of  the  Assembly, 
as  to  the  "  extent  tc  which  aid  may  be  rendered  by  the  State  to  enter- 
prises of  internal  improvement,  by  a  loan  of  its  stock  or  otherwise, 

[Assembly,  No.  306.]  4 


26 


[Assembly 


without  impairing  its  resources  to  prosecute  the  canals  now  in  progress, 
and  without  injury  to  its  financial  arrangements." 

The  enterprises  of  internal  improvement  referred  to,  must  be,  1st, 
those  undertaken  by  corporate  companies ;  and  2d,  those  which  the 
State  may  be  called  on  to  execute.  With  regard  to  the  first  class,  it 
is  presumed  that  the  aid  of  the  State,  by  a  loan  of  its  stock,  would  not 
be  asked  or  granted,  without  the  reasonable  expectation  that  the  prin- 
cipal and  interest  of  the  stock  would  be  faithfully  paid  by  the  company 
to  which  such  aid  should  be  extended.  The  only  limitation  to  aid  of 
this  description  would  be  prescribed  by  a  regard  to  the  amount  of  State 
stock  which  would  be  sent  into  the  market  during  any  year.  It  should 
not  be  permitted  to  exceed  the  natural  demand,  but  should  rather  fall 
under  it.  So  much  depends  on  the  state  of  the  money  market  in  Eu- 
rope, and  that  is  so  fluctuating,  that  no  very  accurate  calculations  can 
be  made.  The  recent  advices  from  England  indicate  great  improve- 
ment in  the  quantity  of  money  seeking  investment,  and  in  the  rate  of 
interest.  Assuming  that  the  direct  loans  of  the  State  for  the  year 
will  not  exceed  three  or  four  millions  of  dollars,  it  is  believed  that  the 
loan  of  its  certificates  of  stock  might  be  made  to  the  amount  of  another 
million,  without  endangering  the  public  credit  or  glutting  the  market. 
But  in  the  opinion  of  this  Board  it  is  of  the  last  importance  that  the 
time  of  selling  such  stock,  the  manner  of  such  sale,  and  the  price, 
should  be  regulated  by  the  Commissioners  of  the  Canal  Fund,  in  order 
to  prevent  direct  and  vexatious  interference  with  the  loans  which  the 
State  may  make. 

With  respect  to  loans  of  stock  to  companies  which  are  not  expected 
to  pay  the  interest  or  the  whole  of  the  principal,  they  would  amount  to 
a  direct  debt,  and  may  be  be  considered  with  the  second  class  of  enter- 
prises ;  so  subscriptions  to  the  stock  of  any  company  would  be  abso- 
lute advances,  and  should  be  in  the  same  class.  The  aid  which  the 
State  may  safely  render  in  these  cases,  and  in  those  where  it  is  called 
upon  to  execute  the  work,  depends  upon  the  estimates  of  the  probable 
amount  of  revenue  in  the  next  seven  years,  and  upon  the  amount  of 
prior  claims  upon  such  revenue.  The  Board  is  not  aware  of  any  ap- 
plication to  the  Legislature,  now  pending,  to  undertake  the  execution 
of  any  new  work,  except  that  of  a  rail-road  between  Ogdensburgh  and 
Lake  Champlain.  The  comparatively  small  sum  which  may  be  neces- 
sary to  commence  the  preparations  for  that  work,  and  which  could  be 


No.  306.] 


27 


judiciously  expended  the  present  year,  would  not  be  felt  in  the  amount 
of  loans  which  the  pubhc  exigencies  seem  to  require. 

Having  arrived  at  the  above  conclusions  as  to  the  financial  condition 
of  the  State,  for  the  ensuing  seven  years,  the  Canal  Board  will  proceed 
to  answer  the  question  propounded  to  them  by  the  Assembly  which 
requires  them  to  state,  "  whether,  in  their  opinion,  any  change  can  be 
made,  advantageously  to  the  public  interests,  in  the  plan,  dimensions 
or  manner  of  execution  of  the  work,  adopted  for  the  enlargement  of  the 
Erie  canal,  so  as  to  lessen  the  expense  of  that  work ;  and  also  how 
long  a  period  of  time  will  be  required  to  complete,  most  advantageously 
to  the  public  interests,  the  enlargement  of  said  canal." 

The  object  of  enlarging  the  Erie  canal  is  to  remedy  those  defects  in 
its  present  construction  with  which  all  are  familiar  who  are  connected 
in  any  manner  with  its  trade  or  navigation.  These  defects  have  been 
so  frequently  explained  in  official  communications  to  the  Legislature, 
that  it  is  not  deemed  necessary  at  this  time  to  specify  them  in  detail. 
Briefly  they  may  be  stated  as  follows  :  the  canal  has  not  sufficient 
width ;  it  is  unnecessarily  crooked  ;  and  it  is  too  shallow  ;  its  struc- 
tures are  feeble,  and  too  small,  and  it  is  not  well  supplied  with  water. 
The  present  width  of  the  canal  is  40  feet  on  the  surface,  and  28  on  the 
bottom,  not  permitting  more  than  two  boats  to  lie  abreast ;  and  the 
locks,  which  ^re  15  feet  wide  and  90  feet  long,  are  too  wide  in  propor- 
tion to  the  width  of  the  canal.  The  enlarged  canal  will  be  70  feet  wide 
on  the  surface,  and  42  on  the  bottom,  with  double  locks  18  feet  wide,  and 
110  feet  long.  The  original  depth  of  the  present  canal  was  4  feet ;  but 
being  left  exposed  on  one  side  to  the  wash  of  the  adjacent  country,  it 
has  become  obstructed  by  bars,  and  for  several  years  has  been  gradu- 
ally filling  with  alluvial  deposites,  so  that  there  is  now  but  little  more 
than  3  feet  available  for  the  purposes  of  navigation.  The  depth  of  the 
enlarged  canal  will  be  7  feet ;  and  that  depth  will  hereafter  be  fully 
maintained  by  securing  the  trench  from  alluvial  deposites,  by  conduct- 
ing the  rivulets  and  larger  streams  now  discharging  their  sediment  into 
the  canal,  through  culverts  passing  under  the  bottom.  The  numerous  cur- 
vatures m  the  present  canal  occasioned  by  unnecessarily  adhering  in  its 
original  construction  to  the  hill  side,  will  be  materially  diminished,  and 
the  line  straightened,  so  that  its  total  length  will  be  lessened  nearly  ten 
miles.  Double  locks  will  be  constructed  throughout  the  line,  thereby 
doubling  the  facilities  for  passing  boats.  The  number  of  lift-locks,  now 
82,  will  be  reduced  to  74,  by  consolidating  some  of  the  lifts  and  dis- 


28 


[Assembly 


tributing  anew  the  levels,  by  which  they  will  be  rendered  much  more 
commodious.  The  summit  at  Jordan,  11 J  miles  long,  will  be  reduced 
to  the  grade  of  the  levels  on  each  side  ;  thus  uniting  three  levels  in  one. 
The  number  of  biidges  will  be  diminished'  nearly  one-third.  The 
locks  and  aqueducts,  many  of  which  were  imperfectly  constructed,  and 
have  become  dilapidated,  are  to  be  rebuilt  in  a  very  durable  manner, 
and  sufficient  strength  and  compactness  will  be  given  to  the  masonry 
to  enable  it  to  withstand  the  constant  and  heavy  concussion  to  which  it 
will  be  subject.  The  width  of  the  aqueducts,  now  affording  room  only 
for  the  passage  of  a  single  boat,  is  to  be  doubled.  The  embankments 
are  to  be  thoroughly  and  carefully  constructed,  and  generally  faced 
with  walling,  and  their  breadth  is  to  be  increased  2  feet.  Guard-gates 
are  to  be  introduced  at  short  intervals  to  prevent  the  injury  which  brea- 
ches might  otherwise  occasion.  A  more  ample  supply  of  water  on  the 
western  division,  from  Lake  Erie  to  the  Seneca  river,  a  distance  of  149 
miles,  is  to  be  secured,  by  giving  to  the  level  between  Lockport  and 
Rochester  an  increase  both  of  width  and  declivity  ;  and  the  channel 
through  the  mountain  ridge  at  Lockport,  now  but  30  feet  wide,  is  to 
be  increased  to  62  feet,  wHh  vertical  sides.  This  arrangement  will 
render  it  unnecessary  longer  to  divert  the  waters  of  the  Genesee  river 
from  the  mills  at  Rochester,  which  has  occasioned  great  injury  to 
the  manufacturing  interests  of  that  city,  and  a  consequent  loss  of 
revenue  to  the  canal.  Capacious  feeders,  from  the  Black  river  and 
other  sources,  are  to  be  constructed,  which  will  insure  a  constant  and 
steady  supply  of  water  on  the  middle  division  of  the  canal,  where  the 
navigation  for  want  of  such  supply  has  been  frequently  embarrassed. 
Upon  the  channel  thus  enlarged,  boats  may  be  employed  of  at  least 
three  times  the  burthen  of  those  now  navigating  the  canal ;  so  that  in 
lieu  of  a  cargo  of  40  or  50  tons,  they  will  carry  from  100  to  150  tons. 
Indeed,  it  is  believed  that  their  burthen  may  be  increased  even  beyond 
that  amount.  The  coal  barges  now  navigating  the  Delaware  and 
Raritan  canal,  the  cliannel  of  which  is  7  feet  deep  and  75  feet  wide, 
carry  from  180  to  200  tons  ;  and  are  of  sufficient  size  and  strength  to 
be  towed  with  safety  across  the  open  bay  between  New-Brunswick  and 
New-York.  The  enlargement  of  the  Erie  canal  must  therefore  operate 
to  concentrate  its  tonnage  in  one-third  only  of  the  number  of  boats 
which  are  now  required ;  and  as  a  necessary  consequence,  the  total 
distance  travelled  by  boats  will  be  reduced  two-thirds.  The  amount 
of  saving  which  will  ensue  from  this  cause,  will  be  appreciated  by  re- 
ferring to  the  commercial  statistics  of  the  canal.    Upwards  of  3,700 


No.  306.] 


29 


boats  are  now  registered  in  the  Comptroller's  office  ;  of  which  at  least 
2,500  are  in  active  movement,  during  considerable  portions  of  the  year, 
employing  a  force  of  nearly  ten  thousand  men,  with  a  proportionate 
number  of  horses.  The  distance  travelled  by  the  boats  in  the  year 
1839,  as  sliown  by  the  tables,  was  4,778,850  miles.  The  concentra- 
tion of  the  tonnage  in  one-third  of  the  present  number  of  boats  will 
therefore  save  an  amount  of  movement  equivalent  to  the  traction  annu- 
ally of  a  single  boat  3,185,900  miles,  and  will  effect  an  annual  reduc- 
tion in  human  labor  equivalent  to  that  of  at  least  5,000  men  ;  and  this 
large  gain,  which  is  calculated  upon  the  present  amount  of  our  inter- 
nal trade,  will  be  continually  progressive,  keeping  pace  with  the  future 
expansion  of  that  trade.  The  large  numbers  of  boats  which  in  busy 
seasons  now  crowd  the  canal,  produce  vexatious  and  injurious  delays, 
which  are  sensibly  felt  by  all  who  are  engaged  in  its  trade  or  navigation. 
In  every  voyage  between  Albany  and  Buffalo,  a  large  portion  of  time 
is  necessarily  lost  in  passing  through  the  masses  which  congregate 
upon  the  eastern  division  between  Utica  and  the  Hudson  River  ;  while 
in  case  of  accident  to  the  canal  itself,  the  rapid  and  almost  instant 
accumulation  of  boats  which  takes  place,  frequently  several  miles  in 
extent,  renders  the  channel  impassable  for  a  long  time  after  the  ori- 
ginal cause  of  interruption  is  removed. 

On  the  11th  day  of  May,  1835,  the  Legislature,  in  view  of  these 
defects  and  embarrassments,  and  of  the  increasing  commerce  of  the 
State,  passed  a  law  directing  the  Canal  Commissioners  to  enlarge  the 
dimensions  of  the  canal  to  such  size  as  should  be  determined  by  the 
Canal  Board.  The  dimensions  were  accordingly  fixed,  soon  after  the 
passage  of  the  law,  at  6  feet  deep  and  60  feet  wide  ;  but  after  further 
and  fuller  examination,  the  Board  reviewed  its  decision,  and  fixed  the 
dimensions  upon  the  present  plan  of  7  feet  deep,  and  70  feet  wide. 

The  plan  thus  prescribed  by  the  Board  has  already  been  executed 
to  a  considerable  extent.  Contracts  have  been  made  for  portions  of 
the  work  estimated  at  ^1 1 ,454,903,  under  which  pajanents  have  been 
made  up  to  the  1st  of  April,  1840,  to  the  amount  of  $5,600,067.51. 
The  total  cost  of  the  work  was  estimated  by  the  late  Canal  Commis- 
sioners, in  their  report  to  the  Assembly,  on  the  30th  March,  1839, 
[Assembly  Documents  of  1839,  No,  339,]  at  $23,402,863.02.  The 
Board  are  aware  that  apprehensions  have  been  entertained  that  this  es- 
timate may  prove  inadequate.    While  it  must  be  admitted  that  large 


30 


[Assembly 


allowances  should  always  be  made  for  contingencies  in  an  enterprise 
so  extensive,  arising  from  circumstances  which  cannot  be  fully  foreseen 
or  provided  for,  yet  the  evidence  thus  far,  growing  out  of  the  actual 
construction  of  the  work,  and  that  too  in  its  most  difficult  divisions,  in- 
duces the  Board  to  believe  that  the  result  will  not  vary  materially 
from  the  estimate  above  stated. 

Assuming  this  estimate,  then,  as  a  basis,  the  following  particulars  in 
respect  to  the  work,  will  furnish  a  view  of  its  different  parts. 

The  ordinary  channel  of  the  canal,  called  the  '''section  ivork,"  will 

cost  $11,270,771  67 

The  damages  for  land  and  buildings  taken,   804,844  60 

The    mechanical  structures,"  so  call- 
ed consist  of 

Locks,  which  are  estimated  at  $4,981,586  83 

Aqueducts,        "        "    2,022,706  78 

Bridges,  "       "    1,266,653  00 

Culverts,  "       "    841,677  95 

Feeders,  (including  that  from  the  Black 

river,)  bulkheads,  guard-gates, 

waste-weirs  and  weigh-locks, . .      702,572  12 

  9,815,196  68 

$21,890,812  95 

To  this  sum  is  added  for  contingencies,  superinten- 
dence and  engineering,   1,512,050  07 

$23,402,863  02 


Geographically  divided,  the  work  will  cost : 
The  eastern  division,  108  miles,  (by  the  new  line,)  from  Albany  to 

Utica,  ...$10,132,254  11  or  $93,817  per  mile. 

The  middle  division,  96  miles, 

from  Utica  to  the  Seneca  river, 

at  Montezuma,   4,159,314  83  or  $43,326  per  mile. 

The  western  division,  159  miles, 

from  Montezuma  to  Buffalo, . .     9,1 1 1 ,293  56  or  $57,423  per  mile. 


$23,402,863  02  or  $64,910  per  mile. 


No.  306.] 


31 


The  remarkable  disproportion  which  is  exhibited  between  the  cost 
per  mile  of  the  eastern  division  and  that  of  the  residue  of  the  route,  is 
owing  to  the  fact,  that  a  large  proportion  of  the  locks  and  other  expen- 
sive structures  are  embraced  within  that  division.  Of  the  74  pairs  of 
lift-locks,  from  Albany  to  Buffalo,  46  are  included  in  the  108  miles 
between  Albany  and  Utica ;  while  there  are  but  7  between  Utica  and 
Montezimia,  and  21  between  Montezuma  and  Buffalo.  Of  the  4  large 
aqueducts,  to  wit,  the  two  across  the  Mohawk  river,  the  one  across 
Schoharie  creek,  and  that  across  the  Genesee  river,  the  three  first  are 
embraced  in  the  eastern  division. 

The  cost  of  the  ordinary  running  line  of  the  canal  or  "  section  work," 
is  divided  geographically : 

The  eastern  division,  108  miles,  $3,583,171  or  $31,177  per  mile 
middle       "        96  2,157,835  or  22,477 

"    western  159  5,529,864  or  34,778 

The  greatest  physical  obstacle  which  the  canal  encounters,  is  in  wi- 
dening the  channel  through  the  mountain  ridge  at  Lockport ;  at  which 
point  there  is  an  expensive  excavation  in  lock  2 J  miles  long,  the  cost 
of  which  will  be  $672,635. 

The  expense  of  the  enlargement  is  increased,  to  a  certain  extent, 
by  the  necessity  of  doing  a  portion  of  the  excavation  during  the  winter 
and  early  spring,  while  the  navigation  is  suspended.  The  difficulties 
which  arise  from  this  cause,  appear,  however,  to  have  been  much  ex- 
aggerated in  the  public  mind.  The  portion  of  work  necessary  to  be 
done  during  the  winter  months,  embraces  not  more  than  one-fourth  of 
the  section  work,  and  a  part  of  the  work  upon  the  culverts  and  waste- 
weirs,  and  its  expense  amounts,  in  the  aggregate,  to  not  more  than 
$3,000,000. 

It  is  stated  by  the  engineers  that  one  half  of  this  sum  might  be  sav- 
ed, if  it  were  practicable  to  do  the  work  in  the  summer :  but  as  the 
amount  thereby  saved  would  not  exceed  $1,500,000,  in  the  judgment 
of  the  Board,  it  would  be  wholly  inexpedient  to  suspend  the  navigation 
of  the  canal  for  that  purpose.  Such  a  change  "  in  the  manner  of  exe- 
cuting the  work,"  though  it  might  lessen  its  expense  to  the  amount 
above  specified,  would  be  in  the  highest  degree  detrimental  to  the  agri- 
cultural, commercial  and  fiscal  interests  of  the  State. 


32 


[Assembly 


In  respect  to  the  order  in  which  the  different  portions  of  the  enlarge- 
ment are  to  be  executed,  the  Board  would  state  that  the  pohcy  hitherto 
has  been : 

1st.  To  expedite  the  completion  of  the  division  from  Albany  to  Uti- 
ca,  upon  which  the  line  is  subdivided,  by  numerous  locks,  into  short 
and  inconvenient  levels,  and  where  the  gieatest  embarrassments  are 
experienced  in  the  navigation. 

2d.  To  rebuild,  upon  the  enlarged  plan,  such  of  the  structures  on 
other  parts  of  the  line  as  are  decaying  and  require  to  be  replaced. 

3d.  To  commence  in  season  such  other  work  as  would  be  likely, 
from  its  magnitude  or  peculiar  situation,  to  require  the  longest  time  in 
its  execution  ;  and, 

4th.  To  complete  the  line,  without  delay,  through  cities  and  princi- 
pal towns,  and  before  the  increase  of  buildings  and  the  augmented  value 
of  land  should  enhance  the  amount  to  be  paid  for  damages. 

Pursuing  this  policy,  the  following  sections  of  the  line  of  the  canal 
have  been  put  under  contract : 

On  the  Eastern  Division. 
73  of  the  108  miles  between  Albany  and  Utica. 

On  the  Middle  Division, 
2  miles  through  Rome, 
2       do  Syracuse, 
11 J  miles  at  Jordan. 

On  the  Western  Division, 

2\  miles  through  the  mountain  ridge,  and 
1  mile  at  the  foot  of  the  locks  at  Lockport. 

There  have  also  been  put  under  contract. 

On  the  Eastern  Division. 
36  double  and  9  single  locks,  all  the  important  aqueducts,  and  most  of 
the  smaller,  structures. 

On  the  Middle  Division. 
3  double  locks  between  Utica  and  Syracuse,  and  the  3  aqueducts 
across  the  Onondaga,  Oneida  and  Nine-Mile  creeks. 


No.  306.J 


33 


On  the  Western  Division, 

1  double  and  4  single  locks  between  Montezuma  and  Rochester,  5 
double  combined  locks  at  Lockport,  and  the  aqueduct  across  the 
Genesee  river  at  Rochester. 

The  cost  of  the  work  thus  put  under  contract  is  geographically 


distributed  as  follows  : 

On  the  Eastern  division,   $8,116,339  00 

do    Middle      do    1,430,310  90 

do    Western    do    1,908,253  10 


$11,454,903  00 

and  every  part  of  the  work  is  embraced  where  any  particular  difficul- 
ty or  delay  in  its  execution  is  to  be  apprehended,  comprehending,  in 
the  aggregate,  92  miles  of  canal,  (including  the  excavation  of  the 
mountain  ridge  at  Lockport,)  all  the  important  aqueducts,  upwards  of 
two-thirds  of  all  the  locks,  and  many  of  the  minor  structures. 

The  residue  of  the  work  yet  to  be  put  under  contract  consists,  in 
the  aggregate,  of  24  locks,  viz.  9  between  Albany  and  Utica,  and  15 
between  Syracuse  and  Rochester,  some  of  the  minor  mechanical  struc- 
tures, and  269  running  miles  of  sections,  the  length  of  which  will, 
however,  b6  considerably  reduced  by  lessening  the  curvatures.  The 
work  on  these  sections  of  269  miles  is  generally  hght ;  so  that  if  it 
should  become  desirable,  the  whole  might  be  completed  within  a  peri- 
od of  three  or  four  years  at  farthest  after  it  should  be  put  under  con- 
tract. Of  the  portion  of  269  miles  last  mentioned,  35  miles  are  on 
the  Eastern  division,  in  detached  sections,  between  Albany  and  Utica. 


Their  estimated  cost  is   $1,270,537 

And  that  of  the  residue  of  the  structures  yet  to  be  put 

under  contract  on  that  division  is  estimated  at   839,526 

Making  a  total  of   $2, 1 1 0,063 

required  in  addition  to  the  work  now  under  contract  on  that  division, 
and  yet  unfinished,  to  render  the  enlargement  available  from  Alban}'- 
to  Utica.    The  total  amount  of  work  now  under  contract  on  the  whole 

line,  as  is  above  stated,  is   $11,454,903 

On  which  there  ha^  been  paid   5,600,067 

Leaving  to  be  paid  on  existing  contracts,  (Carried  for'd,)  $5,854,836 
[Assembly,  No.  306.]  6 


34  [Assembly 

Brought  forward,   $5,854,836 

If  to  this  be  added  the  sum  required,  as  above,  to  render 

the  enlargement  available  to  Utica,   2,1 10,063 

It  exhibits  a  total  of   $7,964,899 

To  complete  the  vv^ork  on  the  Middle  division,  and  thus 
extend  the  enlargement  from  Utica  to  Montezuma, 

will  require,  in  addition,   2,729,004 


$10,693,903 


As  to  the  time  necessary,  "  in  order  to  complete  most  advantageous- 
ly the  enlargement,"  the  Board  would  refer  to  the  facts  thus  presented ; 
from  which  it  will  appear  that  in  order  to  complete  all  the  contracts  now 
existing,  an  expenditure  of  $5,854,836  will  be  requisite.  Stating  this 
sum  in  round  numbers  at  six  millions,  it  may  be  expended  at  the  rate 
of  three  millions  annually  for  two  years,  or  of  two  milHons  annually  for 
three  years.  If  to  that  amount  be  added  the  sum  requisite,  in  order  to 
put  under  contract,  and  complete  the  residue  of  the  work  east  of  Utica, 
being  as  above  stated,  $2,110,063,  or  in  round  numbers  two  milhons, 
it  will  increase  the  sum  to  be  expended  to  eight  millions  ;  and  that 
amount  may  be  expended  at  the  rate  of  four  milhons  annually  for  two 
years,  or  of  $2,666,666  annually  for  three  years  ;  or  it  may  be  une- 
qually divided,  by  expending  three  millions  annually  for  the  two  first 
years,  and  two  millions  for  the  year  succeeding.  To  extend  the  en- 
largement westward  from  Utica,  and  render  available  the  whole  line 
from  that  point  to  Montezuma,  will  require  a  further  expenditure  of  $2,- 
729,004,  or  in  round  numbers,  three  millions.  But  as  the  work  on  that 
division  is  light,  and  will  not  require  for  its  completion  more  than  a  year 
or  two  after  it  shall  be  put  under  contract,  it  may  be  deferred  until  the 
completion  of  the  line  to  Utica  ;  after  which  it  will  require  an  expendi- 
ture of  a  million  and  a  half  annually  for  two  years.  It  is  thus  shown, 
that  the  completion  of  the  work  to  Montezuma,  will  cost  $10,693,903, 
including  payment  for  work  now  in  progress,  and  that  it  may  be  easily 
completed  within  the  next  five  years.  The  division  west  of  Montezu- 
ma, will  require  $7,203,040  in  addition  to  the  work  now  under  contract, 
and  may  be  finished  within  two  or  three  years  after  completing  the  en- 
largement east  of  Montezuma.  The  contracts  for  work  on  that  divi- 
sion already  entered  into,  amount  to  $1,908,253,  and  will  be  executed 
within  the  next  two  or  three  years,  embracing  all  the  points  of  difiicul- 


No.  306.] 


35 


ty  on  that  part  of  the  line,  which  will  facilitate  the  completion  of  the 
whole  at  an  earlier  period  than  that  before  indicated,  if  the  resources  of 
the  State  should  be  equal  to  the  estimates  already  submitted.  In  truth, 
no  physical  obstacles  exist,  to  prevent  the  execution  of  the  whole  of  the 
work  from  the  Hudson  to  Lake  Erie  within  three  or  four  years  from 
this  time.  That  it  would  be  advantageous  to  complete  it  as  soon  as 
possible,  is  evident.  But  the  rate  of  progress  must,  after  all,  depend 
on  the  resomxes  of  the  State  ;  and  the  Legislature  will  be  able  to  de- 
termine in  each  year  the  amount  of  work  that  can  be  judiciously  under- 
taken, in  reference  to  the  means  of  the  State  as  they  shall  then  appear. 
It  is  not  in  the  power  of  the  Canal  Board  to  give  a  ;more  definite  an- 
swer to  that  part  of  the  inquiry  which  relates  to  the  time  in  which  the 
work  can  be  completed  most  advantageously  to  the  public  interests. 

In  respect  to  the  inquiry  whether  any  change  can  now  be  made  ad- 
vantageously to  the  public  interests     in  the  manner  of  the  execution  of 
the  work  ;"  so  far  as  that  inquiry  relates  merely  to  the  style  or  mode 
of  constructing  the  canal  and  its  appurtenances,  the  Board  would  an- 
swer, generally,  in  respect  to  that  part  of  the  work  now  under  con- 
tract and  not  yet  actually  executed,  amounting  to  $5,854,836  :  that 
experience  on  our  public  works  has  uniformly  shown  it  to  be  vex  a 
tious,  embarrassing  and  difficult,  to  vary  the  details  of  existing  con 
tracts,  and  especially  after  much  progress  has  been  made  in  their 
performance.    The  difficulties  arising  from  the  claims  of  contractors 
for  damages  for  variations  of  the  plan,  are  also  much  increased  in 
the  case  of  contracts  for  masonry,  where  subordinate  agreements  are 
usually  entered  into  for  the  preparation  and  workmanship  of  the  stone 
in  all  its  stages,  from  the  original  quarry  to  its  final  position  in  the 
structure  for  which  it  is  designed.    In  respect,  however,  to  so  much 
of  the  work  now  under  contract  as  is  comprised  under  the  head  of 
"  section  work,"  denoting  thereby  the  excavation,  embankment  and 
lining  of  the  ordinary  channel  of  the  canal,  the  Board  are  unhesitatingly 
of  opinion  that  no  change  in  the  plan  of  its  execution  can  now  be  made, 
or  could  ever  have  been  made  with  advantage  to  the  public.  The 
volume  of  water  to  be  sustained  in  the  prism  of  the  enlarged  canal, 
requires  that  the  banks  which  support  it  should  be  thoroughly  and 
faithfully  formed  and  carefully  protected  ;  and  the  Board  know  of  no- 
thing in  the  specifications  accompanying  the  contracts  for  that  por- 
tion of  the  work  wliich  can  safely  be  dispensed  with. 


36 


[Assembly 


With  regard  to  the  locks,  aqueducts  and  bridges,  the  Board  would 
state,  that  the  masonry  of  all  the  s  tructures  which  are  now  under  con- 
tract, is  in  rapid  progress.  Some  of  the  locks  are  in  fact  completed  ; 
others  nearly  so  ;  and  there  is  not,  probably,  a  single  instance  in  which 
the  stone  is  not  already  quarried,  and  more  or  less  conformed  either 
in  size  or  workmanship  to  the  existing  specifications. 

The  aqueduct  at  Rochester,  the  most  massive  and  costly  structure  on 
the  canal,  is  now  nearly  completed ;  and  needs  only  its  parapet  walls 
for  which  the  stone  is  already  cut.  That  across  the  Onondaga  creek 
is  also  finished.  Upon  the  three  large  aqueducts  on  the  eastern  divi- 
sion, the  aggregate  cost  of  which  is  estimated  at  $704,565,  work  has 
already  been  done  to  the  amount  of  $336,720.  Upon  the  locks  be- 
tween Albany  and  Utica,  estimated  at  $3,187,649,  work  has  been  done 
to  the  amount  of  $1,777,429.  From  the  proportions  between  the  sums 
thus  paid  and  the  total  estimated  cost,  it  will  be  evident  to  all  who  are 
conversant  with  this  description  of  business,  that  the  masonry  for  these 
structures  must  now  be  so  far  advanced  as  to  render  it  difficult,  if  not 
impracticable,  at  this  time,  to  change  the  plan  so  as  to  effect  any  mate- 
rial diminution  of  expense. 

With  regard,  however,  to  the  structures  hereafter  to  be  put  under 
contract,  the  Board  are  of  opinion  that  a  cheaper  style  of  masonry  may 
be  advantageously  adopted.  By  permitting  joints  less  close;  by  adopt- 
ing a  coaiser  style  of  face  work,  and  a  rougher  class  of  masonry  for 
bridges  and  culverts  ;  by  admitting  stone  with  greater  inequalities  of 
surface  and  less  exact  in  the  regularity  of  its  form  ;  and  by  allowing  a 
greater  proportion  of  undressed  backing  in  the  lock  walls,  a  considerable 
reduction  of  expense  may  undoubtedly  be  effected.  Nevertheless,  the 
Board  are  deeply  impressed  with  the  importance  of  rendering  the  struc- 
tures connected  with  the  enlarged  canal  as  permanent  as  may  be  rea- 
sonably practicable  ;  and  no  change  should  be  allowed  Avhich  would 
materially  impair  their  strength  or  durability.  The  time,  however, 
which  will  probably  elapse  before  putting  any  further  portions  of  the 
masonry  under  contract,  will  afford  sufficient  opportunity  to  settle  care- 
fully upon  that  mode  of  construction  which  will  best  promote  the  pub- 
lic interests. 

The  great  question,  however,  still  remains  :  Can  any  change  be  ad- 
vantageously made  in  the  dimensions  of  the  present  plan  of  enlarging 
the  canal  which  will  lessen  the  expense  ?    There  can  be  but  little  doubt. 


No.  306.] 


37 


that  by  merely  doubling  the  locks  of  the  present  canal  as  far  west  as 
Utica,  and  without  enlarging  its  channel  at  all,  the  pressure  of  boats  on 
the  eastern  division,  now  experienced,  might,  for  a  time  at  least,  have 
been  obviated.  But  the  plan  of  the  enlargement  has  broader  and  more 
enduring  objects.  It  seeks  what  the  present  canal  originally  sought, 
to  cheapen  transportation,  to  lessen  the  labor  of  exchanging  commodi- 
ties, to  place  the  producer  by  the  side  of  the  consumer,  and  thereby  to 
foster,  preserve  and  increase  the  trade  and  consequent  prosperity  of  the 
commonwealth.  Will  then  the  enlargement  attain  these  objects  ?  and 
will  the  benefits  be  equivalent  to  the  cost?  For  if  it  should  appear  that 
the  money  to  be  expended  in  enlarging  the  canal,  can  be  in  no  way 
adequately  remunerated,  then  it  would  be  clear  that  a  "  change  in  the 
plan  and  dimensions  "  might  be  made  advantageously  to  the  public,  by 
at  once  abandoning  the  undertaking.  But  on  the  other  hand,  if  it  shall 
appear,  upon  a  careful  examination  of  the  present  operations  of  the  ca- 
nal, and  their  probable  increase,  that  the  public  will  be  directly  bene- 
fited by  the  enlargement,  in  a  pecuniary  point  of  view,  to  an  amount 
equivalent  to  the  cost,  then  the  work  ought  to  be  firmly  and  steadily 
prosecuted. 

It  becomes  necessary  then  to  ascertain,  as  precisely  as  may  be,  the 
extent  and  value  of  the  trade  now  tributary  to  the  canal,  its  different 
soiurces,  and  their  probable  increase.  By  ascertaining  the  results 
which  the  Enlargement  will  produce  upon  the  several  branches  of  our 
canal  traffic,  we  shall  be  enabled  to  arrive  at  a  satisfactory  estimate  of 
the  whole. 

And  in  the  first  place,  as  to  the  saving  in  the  cost  of  transportation,  to 
be  produced  by  the  proposed  increase  in  the  dimensions  of  the  canal, 
the  Board  would  observe,  that  the  question  is  somewhat  complicated, 
involving  details  both  practical  and  scientific.  To  deduce  a  precise 
mathematical  result  from  such  premises,  is  obviously  impracticable. 
The  opinions  of  experienced  navigators  concur,  however,  with  the  cal- 
culations of  the  engineers,  that  a  saving  must  ensue  of  at  least  one-half 
of  the  whole  of  the  present  cost  of  transportation,  exclusive  of  tolls. 
The  actual  cost  of  transporting  a  ton  on  the  present  canal,  including 
every  species  of  expense,  except  tolls  to  the  State,  is,  on  the  average, 
nine  mills  per  mile.  The  expense  on  other  canals  of  similar  size,  is 
stated  at  about  the  same  amount.  On  the  other  hand,  it  is  ascertained, 
that  on  the  Delaware  and  Raiitan  canal,  which  has  the  same  depth  and 
only  five  feet  more  width  than  the  enlarged  Erie  canal,  the  cost  of 


38 


[Assembly 


transporting  a  ton  is  less  than  4  mills  per  mile.  The  circumstance, 
too,  can  hardly  fail  to  excite  attention,  that  while  the  cost  of  drawing  a 
loaded  barge  of  200  tons  through  that  canal  43  miles,  is  but  $14.,  the 
expense  of  towing  the  same  barge  by  steam  upon  the  navigable  waters, 
from  New-Brunswick  to^  New-York,  a  distance  of  40  miles,  is  $25. 
In  truth  the  facilities  which  are  presented  by  a  deep  and  wide  canal  for 
economical  traction,  do  not  appear  to  be  fully  appreciated.  After  the 
most  careful  examination  which  the  Board  have  been  enabled  to  bestow 
upon  this  point,  they  have  thought  it  safe  to  assume  5  mills,  or  half  a 
cent,  as  the  amount  per  ton  per  mile,  that  will  be  saved  in  transporta- 
tion by  enlarging  the  Erie  canal  upon  the  present  plan. 

Proceeding,  then,  with  this  rule  as  our  guide  to  ascertain  the  aggre- 
gate amount  of  saving,  it  is  necessary  to  find  the  amount  of  tons  on  the 
Erie  canal,  and  the  number  of  miles  they  are  moved.  The  annual 
statistical  tables  of  the  commerce  of  that  canal,  furnish  the  amount  of 
tons  moving.  By  combining  that  amount  of  tonnage  with  the  amount 
of  tolls  and  their  rate,  we  ascertain  the  distance  moved  with  entire  cer- 
tainty. A  table  has  been  accordingly  prepared,  exhibiting  the  results 
of  this  process,  which  is  hereto  subjoined. 

Those  results  are  not  only  pertinent,  and  indeed  essential  to  the  pre- 
sent inquiry  ;  but  they  will  also  be  found  useful  in  the  information 
which  they  convey  of  the  extent  and  activity  of  each  of  the  branches  of 
our  internal  traffic,  and  in  the  facilities  which  they  afford  for  estimating 
aright  the  comparative  value  and  importance,  and  probable  increase  of 
each  of  its  component  parts. 

Without  incumbering  the  present  communication  with  all  the  minute 
and  laborious  details  of  this  analysis,  it  may  suffice  to  state  broadly  the 
general  result ;  that  the  tonnage  proper,  denoting  thereby  the  tons 
shipped  and  moved  upon  the  Erie  canal,  was  848,007  tons,  exclusive 
of  the  contributions  from  the  lateral  canals  hereafter  mentioned  ;  and 
that  the  total  average  movement  of  that  tonnage  was  154  miles.  The 
saving  of  half  a  cent  per  ton  per  mile  being,  for  this  distance,  77  cents ; 
that  sum  multiplied  by  848,007,  the  number  of  tons,  gives  the  re- 
sult,  $652,965 

as  the  aggregate  amount  which  would  be  annually  saved 


Carried  forward, 


$652,965 


No.  306.] 


39^ 


Brought  forward,   $652,965 

in  the  transportation  of  an  amount  of  tonnage  equal  only 
to  that  now  transported  on  the  Erie  canal. 

The  above  result  does  not,  however,  include  the 
amount  to  be  saved  on  the  transportation  of  articles  now 
transported  on  the  Erie  canal,  which  were  first  shipped 
on  the  lateral  canals  ;  but  the  table  above  referred  to  es- 
timates the  number  of  tons  thus  transported  at  130,000, 
and  the  sum  to  be  annually  saved  in  its  transportation, .  _  106,500 

Making  the  total  amount  of  annual  saving,   $759,465 


It  will  be  perceived  that  in  the  above  computation  no  allowance  is 
made  for  the  constant  and  inevitable  increase  in  the  tonnage  of  the  canal. 
By  applying,  however,  the  same  strict  rule  of  calculation  adopted  in 
the  early  part  of  this  report,  in  computing  the  progressive  increase  of 
the  revenue,  to  wit :  seven  per  cent,  for  a  period  of  seven  years,  or 
seven  and  one-half  per  cent,  for  ten  years,  we  shall  have,  in  1846,  an 

annual  saving  of  „   $1,131,603 

and  in  1849,  of   1,329,064 

to  be  itself  progressively  increased  from  period  to  period,  according  to 
the  onward  march  of  our  internal  trade. 

9 

The  Canal  Board  are  aware  that  an  impression  has  prevailed  to 
some  extent,  that  a  falling  off  may  be  experienced  in  the  tonnage  and 
transportation,  if  not  in  the  revenues  of  the  Erie  canal,  from  the  dimi- 
nution which  it  is  supposed  may  take  place  in  the  bulky  products  of 
the  forest.  Although  it  might  be  urged  that  the  requisite  supply  of 
this  class  of  commodities,  as  they  are  articles  of  necessity,  will  always 
be  forthcoming,  according  to  the  demand  for  their  consumption  ;  yet  it 
can  be  shown  that  they  might  be  totally  withdrawn  from  the  Erie  ca- 
nal, without  affecting  either  its  tolls  or  its  transportation,  to  any  im- 
portant extent. 

The  analysis  above  mentioned,  which  shows  the  several  component 
parts  of  the  traffic  of  the  Erie  canal,  exhibits  also  their  comparative  ex- 
tent of  movement,  and  their  respective  contributions  to  the  revenue. 
Its  evidence  will  be  conclusive  upon  the  point  in  question.  It  shows 
that  of  the  total  tolls  on  the  canal,  $1,377,060,  paid  in  the  year  1839, 


40 


[Assembly 


by  848,007  tons,  the  whole  amount  paid  by  boards,  scanthng  and  tim- 
ber, was  only  $65,017,  or  less  than  one-twentieth  part  of  the  whole. 
Classing  together  the  coarse  and  bulky  articles  falling  under  the  heads 
of  boards  and  scantling,  timber,  stone,  lime,  clay,  firewood,  gypsum 
and  salt,  they  show  an  aggregate  of  403,806  tons,  or  nearly  one-half 
of  the  total  tonnage,  paying  a  toll  of  only  $129,642,  or  less  than  one- 
tenth  of  the  whole  ;  while,  on  the  other  hand,  the  remaining  444,201 
tons,  embracing  mainly  the  finer  and  more  valuable  commodities,  such 
as  merchandise,  flour,  wheat,  and  other  agricultural  products,  paid  in 
tolls,  $1,094,198. 

The  impression,  however,  might  arise,  that  although  the  lumber  and 
other  bulky  articles  might  have  paid  but  a  small  amount  of  the  reve- 
nue, yet  that  they  contributed  largely  to  the  amount  of  transportation. 
But  in  determining  the  amount  of  transportation  furnished  by  any  com- 
modity, the  distance  moved,  as  well  as  its  weight,  is  material.  If  the 
weight  remain  the  same,  then  the  greater  the  distance  moved,  the  larger 
will  be  the  amount  of  transportation.  For  the  same  reason  an  increase 
of  distance  may  be  made  to  equalize  a  diminished  amount  of  weight. 
To  furnish  an  accurate  measure  of  movement,  the  weight  and  distance 
must  be  multiplied  together,  and  the  result  will  denote  the  total  move- 
ment, expressing  it  by  the  movement  in  miles  of  a  single  ton.  By 
comparing  the  results  thus  deduced,  we  obtain  a  clear  view  of  the  re- 
lative amount  of  movement,  or  in  other  words,  of  transportation  fur- 
nished by  each  class  of  commodities  to  the  canal.  This  mode  of  com- 
putation has  accordingly  been  employed  in  preparing  the  table  before 
referred  to.  That  table  shows  the  actual  comparative  amount  of  move- 
ment in  miles  of  each  class  of  commodities,  the  tolls  paid  by  each,  and 
there  is  exhibited  in  another  column  the  amount  of  pecuniary  saving 
which  each  class  of  articles  will  experience  by  the  proposed  cheapen- 
ing of  transportation.  The  total  movement  of  the  tonnage  proper  of 
the  Erie  canal,  as  shown  by  the  table,  and  denoted  by  the  movement  of 
a  single  ton,  is  130,593,000  miles,  and  the  movement  of  each  class  of 
commodities  denoted  in  the  same  manner,  affords  the  means  of  ascer- 
taining its  comparative  value  and  importance  in  furnishing  transporta- 
tion to  the  canal.  Thus  it  is  shown  that  the  movement  of  boards, 
scantling  and  timber,  supposed  by  some  to  constitute  so  important  a 
portion  of  the  total  transportation,  is  but  19,003,572  miles,  or  one-se- 
venth of  the  whole,  while  that  of  merchandise  is  29,134,170  miles, 
and  that  of  flour  and  wheat  40,194,900  miles.    It  is  true  that  an  addi- 


No.  306,J 


41 


tional  amount  of  moveiiienl  may  be  estimated  for  the  product  of  the 
forest,  first  shipped  on  the  lateral  canals  and  subsequently  transported 
on  the  Erie  canal ;  bat  that  amount  may  be  safely  estimated  as  not  ex- 
ceeding thirteen  millions  of  miles,  which  added  to  the  19,003,572  miles 
above  stated,  produces  a  total  of  only  32,003,572  miles,  and  still  leaves 
the  proportion  furnished  by^  those  commodities  little  more  than  one-fifth 
of  the  total  transportation. 

The  view  which  the  table  also  presents  of  the  pecuniar}-  saving  to 
each  class  of  commodities  by  the  proposed  cheapening  of  the  transpor- 
tation, will  be  interesting  in  enabling  us  to  judge  of  the  effect  of  thai 
saving  in  fostering  the  various  branches  of  our  internal  industry,  and 
thereby  increasing  the  commerce  of  the  canal.  It  will  be  obvious  thai 
the  large  am.ount  of  benefit  thus  distributed  will  operate  as  effectually 
in  promoting  the  production,  consumption  and  sale  of  those  respective 
classes  of  commodities  as  if  it  v/ere  directly  conferred  in  the  shape  of 
a  pecuniary  bounty  or  donation  equal  to  the  amountjsaved.  In  some 
instances  it  will  appear  that  the  benefit  thus  conferred  will  actually  ex- 
ceed the  amount  of  tolls  now  paid  by  the  commodity  benefitted.  Salt, 
which  pays  in  tolls  $21,106,  will  be  benefitted  §23,388;  boards  and 
scantling,  which  now  pav  843,265  in  tolls,  will  be  benefitted  §71,968  ; 
while  the  leading  articles  of  western  trade,  flour  and  wheat,  staves  and 
ashes,  paying  in  tolls  $427,387,  will  be  benefitted  8^69,516, 

The  efiect  of  such  a  stimulus  in  animating  and  extending  the  various 
branches  of  our  internal  industry,  and  in  augmentincr  the  amount  of 
tonnage  which  they  will  furnish,  to  say  the  least,  would  abundantlv 
supply  any  diminution  in  the  products  of  the  forest.  So  far,  however, 
from  a  diminution  of  those  commodities  being  likely  to  occur  to  any  se- 
rious extent,  it  is  more  probable  that  the  amount  of  those  very  products 
willj  for  a  considerable  period  of  time,  be  actually  augmented  by  rea= 
son  of  the  enlargement. 

But  there  is  a  branch  of  traffic  in  a  bulky  product,  of  great  and  ra- 
pidly increasing  extent  and  importance,  not  now  enjoyed  by  our  canals, 
upon  w^hicli  the  enlargement  of  the  canal  and  consequent  cheapening  of 
transportation  may  produce  effects  of  the  greatest  consequence  to  our 
fiscal  interest-s.  The  immense  bituminous  and  anthracite  coal-fields  of 
Pennsylvania,  lie  close  upon  the  southern  boundary  of  our  State ;  but 
up  to  the  present  time,  the  coal  has  been  prevented  from  entering  our 
borders  by  the  want  of  adequate  means  of  transportation.    Since  tlic 

[Assembly,  No.  306.]  6 


42 


[Assembly 


close  of  navigation,  however,  the  rail-road  referred  to  in  a  former  part 
of  this  report,  has  been  connpleted  from  the  coal-fields  at  Blossburgh, 
and  is  now  in  full  operation,  by  which  the  bituminous  division  of  this 
great  coal  region  is  directly  connected  with  the  Chemung  canal,  and 
through  that  canal,  the  Seneca  lake  and  the  Cayuga  and  8eneca  canal, 
with  the  main  line  of  the  Erie  canal  at  Montezuma.  The  State  of 
Pennsylvania  is  also  vigorously  prosecuting  the  extension  of  the  North 
Branch  canal,  leading  out  of  the  heart  of  the  anthracite  coal  district,  on 
the  Susquehanna,  to  the  southern  line  of  this  State,  near  Tioga  Point, 
at  which  place  it  may  be  readily  and  cheaply  connected  with  our  pub- 
He  works  by  extensions  of  the  present  lines  of  the  Chemung  and  Che- 
nango canals. 

Our  experience  hitherto  in  the  transportation  of  coal  on  our  public 
works,  has  been  so  limited,  that  we  can  hardly  estimate,  as  it  merits, 
the  great  importance  of  this  new  annexation  to  our  canal  tonnage.  The 
whole  amount  of  coal  carried  on  the  Erie  canal  in  the  year  1S39,  was 
but  7,757  tons  ;  a  quantity  so  small  as  almost  to  escape  attention  ; 
while  in  the  same  year,  there  were  transported  on  the  two  great  coal 
canals  of  Pennsylvania,  (the  Lehigh  and  the  Schuylkill,)  674,270  tons; 
equal  already  to  three-fourths  of  the  total  tonnage  of  the  Erie  canal.  This 
large  amount  of  transportation  has  moreover  grown  up  almost  en- 
tirely within  the  last  ten  years  ;  having  increased  from  79,973  tons, 
in  1829,  to  333,210  tons  in  1834  :  and  again,  from  that  amount  in 
1834  to  674,270  tons  in  1839.  The  extent  to  which  a  traffic  in  coal 
may  be  carried  in  a  country  densely  peopled,  and  especially  upon  a 
channel  of  transportation  so  capacious  as  the  enlarged  Erie  canal,  can 
hardly  be  calculated.  The  demand  which  exists  for  that  species  of 
fuel  in  the  interior  districts  of  this  State,  and  especially  at  the  salt- 
works of  Onondaga,  is  already  very  considerable,  and  it  is  hourly  in- 
creasing with  the  progress  of  our  population.  If  the  enormous  masses  of 
this  material,  now  carried  annually  on  the  canals  of  England,  amount- 
ing to  many  millions  of  tons,  be  taken  at  all  as  a  guide,  we  may  safely 
predict  that  this  branch  of  traffic  will  eventually  produce  results,  not 
only  to  the  treasury,  but  to  the  general  prosperity  of  our  common- 
wealth, of  the  greatest  importance. 

For  all  commercial  purposes,  the  diminution  of  the  cost  of  transport- 
ation on  a  canal  one  half,  is  equivalent  to  a  reduction  of  its  length  one 
half.  In  that  sense,  the  enlargement  of  the  channel  from  Albany  to 
Montezuma  (at  which  point  the  coal  of  Pennsylvania,  sent  through  the 


No.  306.] 


43 


Chemung  canal,  will  be  received  on  the  Erie  canal,)  will  operate  to  re- 
duce the  present  distance  of  206  miles,  between  these  two  points,  to 
103  miles  ;  and  in  the  like  sense,  the  completion  of  the  enlargement 
from  Albany  to  Buffalo,  will  abridge  its  total  length  from  364  to  182 
miles ;  and  thus  bring  Lake  Erie,  with  all  its  growing  commerce,  with- 
in half  of  its  present  distance  from  the  tide  waters  of  the  Hudson. 

It  is  not  the  design  of  the  Board  at  this  time  to  attempt  any  compu- 
tation of  the  future  growth  of  our  western  trade  ;  but  it  will  be  proper 
to  state,  that  its  progress  thus  far  has  operated  greatly  to  increase  the 
importance  of  the  western  division  of  the  canal,  and  to  render  it  neces- 
sary that  every  facility  which  may  be  required  for  the  convenience  of 
its  navigation  should  be  promptly  afforded.  The  statistical  tables  of 
the  canal  commerce  show  that  the  trade  west  of  Montezuma  now  pays 
nearly  two-thirds  of  all  the  tolls  of  the  Erie  canal.    In  1839,  the  ton- 


nage shipped  west  of  that  point  paid   $522,312 

The  toll  on  ascending  merchandise  consumed  within  that 

portion  of  the  State,  amounted  to  at  least   115,000 

And  the  toll  on  the  29,699  tons  sent  westward  from  Buffalo, 

was   190,073 


$827,385 

To  which  add  the  toll  paid  on  the  boats,  estimated  at  .  40,000 

9   

And  a  total  is  exhibited  of   $867,385 


While  in  the  same  year  the  total  tolls  paid  upon  the  trade  of 
that  part  of  this  State  on  the  main  line  of  the  Erie  canal 
east  of  Montezuma,  was  only   $361,302 

And  including  the  toll  on  the  boats,  estimated  at  20,000 

 $381,302 


This  large  proportion  of  toll  can  not  be  acounted  for  on  the  ground 
that  the  population  west  of  Montezuma  furnishes  a  greater  amount  of 
tonnage  in  proportion  to  its  numbers,  than  the  population  of  the  canal 
districts  lying  east  of  that  point ;  for  in  fact  the  tonnage  shipped  west  of 
Montezuma  was  only  272,544  tons,  while  that  shipped  between  that  point 
and  the  Hudson  river  was  361,919  tons  ;  but  it  is  because  the  articles  of 
western  commerce  are  carried  a  greater  distance,  and  consist  almost  ex- 
clusively of  commodities  paying  the  highest  rates  of  toll,  and  thus  ope- 
rate in  a  compound  ratio  to  swell  their  contribution  to  the  treasur}\  The 
importance  of  this  consideration,  in  estimating  the  fiscal  results  to  be 


44 


[Assembly 


produced  by  the  increase  of  our  commmerce  west  of  Buffalo^  will  be 
readily  appreciated. 

The  preservation  of  our  present  trade,  and  the  extension  of  which  it 
is  capable,  are  objects  worthy  of  our  niost  zealous  efforts.  The  idea  has, 
however,  been  suggested,  that  the  great  objects  proposed  by  the  present 
enlargement  might  be  attained  by  adopting  dimensions  less  liberal,  and 
that  the  size  may  now  be  reduced  advantageously  to  the  public  interest  by 
diminishing  the  depth  of  the  canal  to  6  and  its  width  to  60  feet.  Were 
this  question  a  new  one,  and  had  no  work  been  already  done  on  the  pre- 
sent plan,  the  question  might  possibly  present  a  different  aspect,  and  yet 
the  policy  of  adopting  this  lesser  size  and  smaller  capacity  might  well  be 
doubted,  when  it  should  appear  that  the  pecuniary  results  in  the  cheap- 
ening of  transportation  would  be  seriously  diminished.  The  saving  by 
a  canal  of  6  by  60  feet,  it  is  believed  would  be  at  least  one  fifth  less  than 
by  a  canal  of  7  by  70  feet.  The  amount  annually  gained  on  the  pre- 
sent trade  would  therefore,  be  reduced  from  $759,465,  to  $607,572, 
shewing  an  annual  difference  of  $151,893,  and  that  difference  will  it- 
self continually  increase  with  the  increase  of  the  commerce  of  the  ca- 
nal ;  amounting  in  1846,  on  the  basis  of  computation  above  assumed, 
to  $226,321  ;  and  in  1849,  to  $265,813,  and  so  on  progressively  there- 
after. But  the  work  of  the  enlargement  is  now  so  far  advanced,  that 
no  change  can  in  fact  be  made  which  will  very  materially  lessen  its 
cost.  The  line  from  Albany  to  Utica  is  so  far  completed,  and  the  em- 
bankment so  far  formed,  that  it  would  in  fact  be  more  costly  to  reduce 
than  to  continue  the  present  size  on  that  division.  A  great  proportion 
of  all  the  structures  on  the  whole  line,  and  which  are  adapted  to  a  canal 
of  7  feet  by  70  are  in  progress,  and  some  of  the  most  important,  such  as 
the  Rochester  aqueduct,  and  many  of  the  locks  are  now  nearly  completed. 
The  cost  of  the  section  work  not  under  contract  west  of  Utica,  does 
not  exceed  seven  millions,  and  even  if  one-sixth  of  that  amount  (which, 
however,  will  exceed  the  actual  proportion)  could  be  saved,  it  would 
effect  a  reduction  of  little  more  than  a  million,  to  which  if  the  diminu- 
tion in  the  length  of  the  culverts  and  bridges  is  added,  the  total  amount 
of  saving  would  not  exceed  a  million  and  a  half  of  dollars.  The  inte- 
rest upon  this  sum  at  five  per  cent,  being  $75,000,  or  less  than  one-half 
of  the  immediate  difference  in  the  saving  of  transportation,  by  retaining 
the  present  dimensions,  those  dimensions  cannot  in  the  judgment  of 
the  Board  be  now  changed  "  advantageously  to  the  public  interests." 
This  expression  the  Board  do  not  understand  as  relating  wholly  or 


No.  306.J 


45 


chiefly  lo  the  advantages  of  a  change  in  a  merely  fiscal  view,  but  that 
it  is  to  be  taken  in  larger  and  more  liberal  sense,  and  as  embracing  the 
interests  of  the  whole  community,  of  the  agricultural,  manufacturing, 
navigating  and  commercial  classes  :  in  fact  of  all  our  population,  wheth- 
er producers,  carriers  or  consumers. 

'  That  the  interests  of  all  these  will  be  largely  promoted  by  cheapen- 
ing the  cost  of  transportation  needs  no  arguments  to  prove.  Whether 
this  increase  in  consequence  of  the  mere  enlargement,  will  be  such  as 
to  remunerate  the  expense  of  that  work  by  creating  trade,  which 
would  not  otherwise  exist,  or  by  preserving  that  which  would  other- 
wise be  diverted  into  different  channels,  is  a  question  respecting  which 
it  is  not  possible  to  arrive  at  any  certain  and  precise  conclusion. 
When  bounds  can  be  set  to  the  population  of  the  interminable  west, 
and  when  limits  can  be  assigned  to  the  results  of  its  productive  ener- 
gy, we  may  begin  to  calculate  what  amount  of  tonnage  it  will  afidrd  to 
our  main  canal.  The  revenue  upon  that  tonnage,  it  has  already  been 
shown,  must  necessarily  be  greater  than  that  derived  from  any  other 
source.  The  doubling  only  of  the  present  trade  west  of  Montezuma 
would  produce  an  increase  of  tolls  annually,  of  §866,145.  When  we 
look  at  the  regular  increase  of  the  trade  w'ith  the  western  States,  from 
the  infancy  of  our  canals  to  the  present  day,  and  consider  the  reasons 
which  exist  for  anticipating  a  greater  proportionate  increase  in  the 
next  ten  or'iwenty  years,  the  expectation  that  it  will  be  doubled  or  tre- 
bled in  that  time  will  not  be  deemed  chimerical.  If  the  estimates  of 
the  revenues  of  the  canal  for  the  year  1846,  made  in  the  early  part  of 
this  report,  should  be  realized,  they  will  of  course  represent  a  corre- 
sponding increase  in  the  amount  of  tonnage  ;  and  calculations  of  that 
amount  at  a  more  distant  period  might  be  made,  by  applying  the  same 
rule  of  a  per  centage  for  a  given  number  of  years  to  find  the  tolls,  and 
by  these  tolls  ascertain  the  tonnage.  The  results  of  such  a  calcula- 
tion would  exhibit  very  strongly  the  necessity  of  a  canal  of  the  largest 
dimensions,  to  accommodate  the  tonnage  that  would  be  thus  indicated 
at  the  termination  of  twelve  or  fifteen  years  from  this  time. 

It  should  be  remembered,  also,  that  our  hold  upon  the  present  trade 
on  our  canals  and  upon  the  sources  of  its  supply,  is  not  undisputed. 
The  State  of  Pennsylvania  and  her  citizens  are  endeavoring  by  an  ex- 
tension of  their  main  line  from  Pittsburgh  to  Erie,  and  by  a  branch  to 
Cleveland,  to  secure  the  lake  trade  and  divert  from  us  the  rich  stream 
that  flows  from  that  direction  to  our  canal.    The  facts  that  the  lake  at 


46 


[Assembly 


Erie,  and  particularly  at  Cleveland,  is  freed  from  ice  much  earlier  in 
the  season  than  at  Buffalo  ;  and  that  from  the  same  cause  the  Pennsyl- 
vania canals  are  opened  for  navigation  much  sooner  than  ours  can  be, 
give  decided  advantages  at  our  expense.  We  have  no  means  of  coun- 
teracting those  advantages  but  by  diminishing  to  the  lov^^est  possible 
limit  the  expense  of  transportation ;  and  thus  inducing  a  delay  in  for- 
warding produce,  which  will  be  compensated  by  a  saving  in  the  charges 
for  freighting  it.  The  enlarged  canal  will  go  far  toward  furnishing  this 
compensation  to  an  extent  that  will  be  a  sufficient  inducement  for  pre- 
ferring it  to  the  Pennsylvania  communications,  It  is  very  questionable 
whether  a  canal  of  less  dimensions,  than  those  contemplated  for  the 
enlargement,  would  accomplish  the  same  purpose. 

Transportation  on  the  canals  of  Pennsylvania,  for  any  given  distance, 
can  be  had  as  cheap  as  on  our  own.  The  disadvantages  under  which 
they  labor  are,  1  st,  that  of  a  greater  distance  from  the  place  of  shipment 
to  the  ports  of  either  Philadelphia  or  Baltimore,  and  2d,  the  necessity  of 
two  trans-shipments  in  passing  over  the  Allegany  portage  and  the  Co- 
lumbia rail-road.  These  disadvantages  are  mitigated  by  the  mildness 
of  the  climate,  which  opens  their  navigation  at  an  early  period  in  the 
season.  In  this  conflict  for  the  possession  of  the  trade  of  the  western 
lakes,  the  reduction  of  the  price  of  transporting  property  for  three  hun- 
dred and  fifty  miles,  one  half,  will  have  an  important  bearing  upon  the 
result.  It  therefore  becomes  an  exceedingly  interesting  question,  whe- 
ther the  enlargement  of  the  Erie  canal  should  not  be  prosecuted,  in  or- 
der to  enable  us  to  retain  that  trade  which  now  produces  such  a  large 
portion  of  our  revenue,  and  which  promises  for  the  future  such  great 
accessions.  The  struggle  with  our  rivals  may  be  close  and  severe,  and 
we  may  need  every  advantage  that  may  be  fairly  secured. 

The  Canal  Board,  in  their  communication  to  the  Legislature  in  1836, 
(Assembly  Document,  No.  98,)  give  the  following  reasons  for  a  canal  of 
70  feet  by  7, 

1st.  That  the  idea  of  a  second  enlargement  should  not  be  enter- 
tained, in  consequence  of  the  derangement  that  would  be  incident  to  a 
change  of  its  boundaries. 

2d.  That  from  the  best  calculations  and  observations  that  could  be 
made,  the  greatest  econonr  y  in  the  traction  of  a  canal,  would  be  found 
in  one  of  70  feet  by  7. 


No.  306.] 


47 


3d.  That  the  expense  of  transportation,  exckisive  of  tolls,  would  be 
r«duced  50  per  cent. 

After  having  once  decided  upon  a  canal  of  60  feet  by  6,  the  Board, 
on  a  review  of  the  subject,  finally  changed  it  to  70  feet  by  7. 

These  are  reasons  certainly  of  great  weight.  Cities  and  villages  will 
be  adapted  to  the  dimensions  once  fixed.  The  farmers  and  other  own- 
ers of  property  along  the  line  will  arrange  the  subdivisions  of  their  land, 
and  will  erect  their  buildings  in  reference  to  those  dimensions.  The 
vexation  and  injury  to  individuals,  and  the  enhanced  expense  to  the 
State,  of  any  change  in  the  boundaries  of  a  canal,  together  with  the  in- 
herent difficulties  of  such  a  change,  of  which  we  have  had  some  expe- 
rience, should  admonish  us  against  undertaking  such  an  improvement 
on  any  scale  that  would  be  likely  to  require  further  alteration.  The 
dimensions  of  such  a  work,  obviously  should  not  be  fixed  in  refer- 
ence  to  its  temporary  use,  but  in  view  of  a  duration  of  time  as  extended 
as  the  durability  of  the  work  itself,  and  of  an  amount  of  business  which 
in  such  a  time  would  be  likeh^  to  need  or  seek  the  advantages  it  of- 
fered. 

In  reference  to  the  diminished  expense  of  traction  on  a  canal  of  large 
dimensions,  and  the  general  saving  in  the  cost  of  transportation  on  such 
a  canal,  the  considerations  presented  in  a  former  part  of  this  report,  it 
will  be  se^n.  corroborate  and  fortify  the  views  of  the  Canal  Board  of 
1836. 

The  weight  to  which  these  remarks  would  be  entitled,  if  the  ques- 
tion of  the  dimensions  of  the  canal  was  an  open  one,  is  much  increased 
by  the  fact,  that  the  plan  has  been  adopted,  that  its  execution  has  been 
commenced  and  prosecuted  to  a  great  extent ;  that  its  abandonment 
would  involve  certain  loss,  and  would  materially  aflect  public  and  pri- 
vate interests,  which  have  become  identified  with  its  completion.  The 
question  has,  therefore,  assumed  a  new  aspect,  and  requires  other  and 
different  elements  to  be  taken  into  consideration  in  its  determination. 

It  has  been  shown  in  a  former  part  of  this  report,  that  the  comple- 
tion of  the  enlargement,  as  far  at  least  as  Utica,  on  the  present  plan  of 
its  dimensions,  is  demanded  by  prudence,  the  necessities  of  the  naviga- 
tion, and  by  sound  economy.  If  so  large  a  portion  of  the  canal  be 
constructed  of  the  dimensions  of  70  feet  by  7,  while  other  detached  parts 
have  been  already  made  of  the  same  size,  great  inconvenience  would 


48 


[Assembly 


be  experienced  in  having  other  portions  of  it  of  reduced  dimensions. 
Boats  adapted  to  one  size  would  not  be  accommodated  by  a  difierent 
one  ;  and  transhipments  of  property  from  one  boat  to  another,  would 
counterbalance  all  the  advantages  of  using  the  enlarged  portion.  The 
diminution  of  the  depth  or  width  of  a  canal  in  one  portion  of  it,  is  for 
most  practical  purposes,  a  reduction  of  the  whole  channel  to  the  same 
dimensions  ;  and  thus  the  great  objects  of  a  canal  as  an  avenue  of  trade 
with  the  west  would  be  so  far  defeated.  No  part  of  our  State  has  so 
great  an  interest  in  a  canal  of  large  dimensions,  as  the  city  of  New-York. 
If  the  views  which  have  been  presented  are  entitled  to  any  weight,  they 
must  have  shown  that  such  a  canal  is  essential  to  retain  the  business 
which  is  threatened  by  the  rivalry  of  Philadelphia  and  Baltimore,  and 
to  divert  from  New-Orleans  that  stream  of  trade  from  more  remote 
parts  of  the  Western  States,  which  natural  causes  would  seem  to  have 
destined  for  that  port. 

These  considerations,  and  those  which  have  been  presented  in  other 
parts  of  this  report,  induce  the  Canal  Board  to  express  it  as  their  opi- 
nion that  the  dimensions  of  the  enlargement  as  at  present  contemplated, 
cannot  be  changed  advantageously  ;  and  that  having  abundant  resourc- 
es to  execute  it,  the  public  inteiest  demands  its  completion.  They 
would  at  the  same  time  remark,  that  in  their  judgment  it  should  be  pro- 
secuted in  such  a  manner  as  not  to  embarrass  tlie  resources,  or  jeopard 
the  credit  of  the  State,  or  interfere  with  the  just  claims  of  other  works 
of  internal  improvement.  The  means  which  will  probably  be  at  our 
command  for  the  next  seven  years,  have  already  been  exhibited.  By 
a  prudent  use  of  those  means,  the  work  can  be  prosecuted  steadily  and 
gradually,  so  as  to  ensure  its  ultimate  completion,  and  in  its  progress 
afford  many  essential  facilities  to  the  navigation.  By  the  expenditure 
of  ten  or  twelve  millions  within  the  ensuing  five  or  seven  years,  the 
enlargement  may  be  completed  to  Utica  or  Montezuma,  and  through  the 
city  of  Rochester  ;  the  double  locks  and  aqueducts  finished  along  the 
whole  line,  and  the  channel  through  the  Mountain  Ridge  at  Lockport, 
excavated,  so  that  the  work  then  remaining  to  be  done  would  be  the 
easiest  and  cheapest  part  of  the  whole.  Such  in  the  view  of  the  Board 
would  be  the  true  policy  of  the  State  ;  which  would  thus  indicate  at 
once,  its  confidence  in  its  own  resources,  and  yet  a  moderation  in  their 
employment,  which  would  satisfy  all  our  fellow-citizens  ;  dispel  any 
apprehensions  that  may  have  been  entertained  of  recklessness  and  pro- 
digality in  expenditure ;  confirm  the  confidence  of  capitahsts  in  our 


No.  306.] 


49 


prudence  as  well  as  in  our  ability  ;  and  enable  us,  without  the  imposi- 
tion of  any  burdens  upon  the  people,  to  diffuse  blessings  of  incalculable 
value  to  them  and  our  posterity,  and  establish  a  fountain  of  productive 
wealth,  which  would  annually  yield  an  income  to  be  applied  to  the  pro- 
motion of  all  the  objects  of  good  government. 

JOHN  C.  SPENCER, 
SAMUEL  B.  RUGGLES, 
O.  L.  HOLLEY, 
BATES  COOKE, 
A.  WHITNEY, 
WILLIS  HALL, 
HENRY  HAMILTON, 
DAVID  HUDSON, 
GEO.  H.  BOUGHTON, 
S.  NEWTON  DEXTER, 
J.  HAIGHT, 
L.  BRADISH, 

Albany,  April  9,  1840 


[Assembly,  No.  306. ) 


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Avery  Architectural  and  Fine  Arts  Library 
Gift  of  Seymour  B.  Durst  Old  York  Library 


